\u3000\u3 Bohai Water Industry Co.Ltd(000605) 599 Beijing Caishikou Department Store Co.Ltd(605599) )
In 2021, the net profit attributable to the parent company increased by 0.61% year-on-year, and that of 1q2022 increased by 71.54% year-on-year
On April 26, the company released the annual report of 2021: in 2021, the operating revenue was 10.406 billion yuan, a year-on-year increase of 47.23%, the net profit attributable to the parent was 364 million yuan, which was converted into fully diluted EPS of 0.47 yuan, a year-on-year increase of 0.61%, and the net profit deducted from non attributable to the parent was 354 million yuan, a year-on-year increase of 4.06%.
1q2022 achieved an operating revenue of 3.470 billion yuan, a year-on-year increase of 17.55%, a net profit attributable to the parent of 180 million yuan, equivalent to a fully diluted EPS of 0.23 yuan, a year-on-year increase of 71.54%, and a deduction of non attributable net profit of 172 million yuan, a year-on-year increase of 44.19%.
In 2021, the company’s comprehensive gross profit margin decreased by 2.60 percentage points and the period expense rate decreased by 1.08 percentage points. In 2021, the company’s comprehensive gross profit margin was 11.34%, a year-on-year decrease of 2.60 percentage points. 1q2022 company’s comprehensive gross profit margin was 12.64%, up 0.75 percentage points year-on-year.
In 2021, the company’s expense rate was 4.42%, a year-on-year decrease of 1.08 percentage points, of which the sales / management / Finance / R & D expense rate was 3.03% / 0.95% / 0.36% / 0.08%, a year-on-year change of -0.61 / – 0.38 / – 0.12 / + 0.02 percentage points respectively. 1q2022 company’s expense rate during the period was 3.92%, with a year-on-year decrease of 0.18 percentage points. Among them, the sales / management / Finance / R & D expense rate was 2.78% / 0.89% / 0.20% / 0.05% respectively, with a year-on-year change of + 0.05 / – 0.04 / – 0.20 / + 0.02 percentage points respectively.
The company’s stores gradually go out of North China, set up new sub brands and improve the product matrix
In 2021, the company opened 17 new direct chain stores. By the end of 2021, the company’s stores include the company’s Beijing head office and 58 direct chain stores. In the first quarter of 2022, the company opened five new direct stores, four of which were located in Xi’an, Shaanxi, and closed one. As of March 31, 2022, the company’s stores cover Beijing, Hebei, Tianjin, Inner Mongolia, Jiangsu and Shaanxi, and the company’s stores are gradually going out of North China. In terms of brand building, in 2021, the company set up a new sub brand of “caibaichuan” focusing on gufajin and “caibaiyue time” for the young consumer market, and constantly improved its product matrix.
Maintain the profit forecast and maintain the “overweight” rating
The company’s performance in 2021 was lower than expected, mainly due to the decline in gold price, which led to a certain decline in the company’s gross profit margin. However, the company’s performance in the first quarter of 2022 was higher than expected, which was mainly due to the benefit of the Winter Olympics and the high scenery of gold products. On the whole, we maintained the prediction of the company’s EPS of 0.63/0.72 yuan in 2022 / 2023 and added the prediction of the company’s EPS of 0.80 yuan in 2024. The company’s stores are gradually going out of North China, the product matrix is constantly improved, and the “overweight” rating is maintained.
Risk tip: the expansion effect of Fuwai market is less than expected, the fluctuation of gold price is intensified, the proportion of revenue of Beijing head office is too high, and the risk of secondary new shares is high.
