\u3000\u3 Shengda Resources Co.Ltd(000603) 719 Bestore Co.Ltd(603719) )
Events
On the evening of April 28, 2022, the company released the first quarterly report of 2022: the revenue of 2022q1 was 2.942 billion yuan, an increase of 14% at the same time; The net profit attributable to the parent company was 93 million yuan, with a decrease of 9%; Deduct non net profit of 62 million yuan, with a decrease of 31%. Key investment points
The performance was in line with expectations. The epidemic affected the profitability. The company’s 2022q1 revenue was 2.942 billion yuan, an increase of 14% at the same time; The net profit attributable to the parent company was 93 million yuan, with a decrease of 9%; The deduction of non net profit was 62 million yuan, a decrease of 31% at the same time, which was caused by the increase in express delivery and storage costs caused by the epidemic in some regions. The overall performance of the first quarter was in line with expectations. The gross profit margin of 2022q1 is 26.3% (with 5pct deducted), which is due to the increase of freight and so on. The net interest rate of 2022q1 is 3.22% (with a decrease of 0.8pct), which is due to the 4.6% (with an increase of 0.3pct) of management expense rate under the decline of gross profit. At the end of 2022q1, the contract liabilities were 274 million yuan, an increase of 25 million yuan month on month and 110 million yuan year on year. The net cash flow from operating activities in 2022q1 was 89 million yuan, an increase of 346% at the same time; Among them, the payment received was 3.55 billion yuan, an increase of 37% at the same time.
The group buying business grew rapidly, and the opening of stores continued. In terms of the business form of medium-term operation, the revenue of e-commerce in 2022q1 was 1.785 billion yuan, an increase of 20% at the same time; Franchise revenue was 780 million yuan, an increase of 3% at the same time; The direct retail revenue was 540 million yuan, an increase of 16% at the same time; Group purchase revenue was 170 million yuan, an increase of 80% at the same time. In terms of sub regions, in 2022q1, the revenue of central / East / Southwest / South / North China and Northwest / e-commerce was 6.7/2.6/2.1/1.4/0.5/1.951 billion yuan respectively, with an increase of 5.9% / 8.4% / 21.6% / – 5% / 29% / 23% respectively. In the circulation channel, taking the markets in North China, Northwest China and Northeast China as the cut-off entrance, the company has initially formed a multi brand management product matrix of Bestore Co.Ltd(603719) , liangpin xiaoshixian and liangpin Huixuan, as well as a channel matrix combining modern supermarkets, traditional channels, new retail and community group purchase, so as to layout and develop offline high-quality dealers. In 2022q1, 31 Direct stores and 47 franchise stores have been contracted to be opened. By the end of 2022q1, there were 3007 stores, including 934 Direct stores and 2073 franchise stores; 142 new stores were opened in the first quarter.
Balanced layout of all channels and differentiated needs of subdivided groups
2022 planning: 1) balanced layout and development of all channels; 2) Strengthen the ability of product innovation and realize the two wheel drive of products and channels; 3) Increase investment in product R & D and create barriers to industry competition; 4) Promote the in-depth coordination of the supply chain and build the core competitiveness of the supply chain. In 2021, the company reached 120million members through all channels, with more than 62.45 million key maintenance members, including 34.41 million store members, 11.99 million e-commerce members, 13.19 million wechat members, 3.6 million Alipay members and 2.15 million app members. Among active members, 70% are women and 30% are men. The main consumer groups are cutting-edge white-collar workers, senior white-collar workers and young mothers aged between 18 and 40. In 2021, member sales accounted for about 61.16% of the company’s total sales. In 2021, according to the special needs of subdivided groups and scenes such as children, women, fitness and tea break scenes, 86 products will be developed for listing and 47 reserve products. In 2021, the omni-channel terminal sales of “xiaoshixian” was 417 million yuan, an increase of 41.17% at the same time; Among them, the terminal sales of health and nutrition lollipop (sugar) series reached 128 million, accounting for more than 30%, and grew into a star series, driving the overall growth of the brand. In 2021, 28 new children’s snacks were launched, accounting for 35.17% of sales. New product innovation helped the rapid growth of the brand.
Profit forecast
It is estimated that the EPS from 2022 to 2024 will be 0.87/1.25/1.72 yuan, and the current share price corresponding to PE will be 26 / 18 / 13 times respectively, maintaining the “recommended” investment rating.
Risk tips
Macroeconomic downside risk, consumption dragged down by the epidemic, the promotion of new products is less than expected, the risk of rising raw materials, the risk of further intensification of competition, etc.
