\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 398 Hla Group Corp.Ltd(600398) )
The performance in 21 years is still recovering, and the sales of 22q1 is under pressure due to the impact of the epidemic
In 2021, the company’s operating revenue was 20.188 billion yuan, a year-on-year increase of 12.41%, a decrease of 8% compared with 19 years, the net profit attributable to the parent was 2.491 billion yuan, a year-on-year increase of 39.60%, a decrease of 22% compared with 19 years, and the net profit not attributable to the parent was 2.386 billion yuan, a year-on-year increase of 37.79%. EPS0. 58 yuan. The proposed dividend per share is 0.51 yuan (including tax).
Quarter by quarter, the revenue of 21q1-22q1 in a single quarter was + 42.77%, + 9.08%, + 9.39%, – 2.40%, – 5.15% year-on-year respectively, and the net profit attributable to the parent company was + 185.33%, + 23.87%, + 15.89%, – 10.25%, – 14.17% year-on-year respectively. The decline in revenue and net profit of 22q1 expanded month on month, mainly due to the impact of China’s epidemic on terminal sales.
The proportion of online channel revenue increased, and the growth of small brands was prominent
Revenue splitting: 1) by brand, revenue of Hla Group Corp.Ltd(600398) series is still dominant, accounting for about 75% of revenue in 21 years, with a year-on-year increase of 9.91% and a decrease of about 13% compared with 19 years; San Keno’s revenue accounted for about 11%, with a year-on-year increase of 9.14%; The income of other brands (ovv, boys and girls, preferred, Yingshi, etc.) accounted for 10%, with a year-on-year increase of 27.14%.
22q1 Hla Group Corp.Ltd(600398) series, San Keno and other brands’ revenue were – 7.28%, – 4.28% and + 16.71% respectively year-on-year.
2) in terms of channels, online revenue accounted for 14% in 21 years, with a year-on-year increase of 32.98%; Offline revenue increased by 8.54% year-on-year and decreased by about 17% compared with 19 years. Among them, the revenue of Direct stores, franchise stores and associated stores increased by + 44.39% and + 7.62% year-on-year respectively. 22q1 online and offline revenue were – 6.33% and – 5.10% year-on-year respectively. Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels were adversely affected by the Chinese epidemic in the first quarter, resulting in a year-on-year decline in revenue.
3) in terms of offline stores, there were 5672 Hla Group Corp.Ltd(600398) series stores at the end of 21, a net increase of 129 (an increase of 2.33%) over the beginning of 21, including 241 Direct stores, franchise stores and associated stores (+ 50%) and – 112 (- 2.21%) respectively; There were 1980 stores of other brands, a net increase of 142 (+ 7.73%) over the beginning of the 21st century.
At the end of March 22, there were 5692 Hla Group Corp.Ltd(600398) series stores, a net increase of 0.35% over the beginning of March 22; There were 1979 stores of other brands, which was basically the same as that at the beginning of the year.
The gross profit margin and expense rate both increased, and the inventory turnover of 22q1 slowed down
Gross profit margin: the gross profit margin of the company in 21 years was 40.64%, with a year-on-year increase of 3.22pct; In terms of brands, the gross profit margins of Hla Group Corp.Ltd(600398) series, San Keno and other brands are 40.01% (+ 4.02pct), 51.57% (- 1.14pct) and 44.14% (+ 5.66pct) respectively; By channel, the online and offline gross profit margins are 36.19% (- 2.28pct) and 42.71% (+ 4.54pct) respectively; In terms of store types, the gross profit margins of Direct stores, franchise stores and associated stores are 63.49% (+ 7.33pct) and 36.64% (+ 2.89pct) respectively.
22q1 gross profit margin increased by 2.36pct to 45.26% year-on-year; In terms of brands, the gross profit margins of Hla Group Corp.Ltd(600398) series, San Keno and other brands are 45.72% (+ 2.91pct), 53.88% (- 1.34pct) and 44.40% (+ 0.21pct) respectively; By channel, the online and offline gross profit margins are 41.51% (+ 6.92pct) and 46.64% (+ 1.88pct) respectively; In terms of store types, the gross profit margins of Direct stores, franchise stores and associated stores are 53.13% (- 3.80pct) and 43.98% (+ 2.33pct) respectively.
Expense rate: during the 21 years, the expense rate was 21.68%, with a year-on-year increase of 0.72 PCT, of which the expense rates of sales, management, R & D and finance were 16.11%, 4.93%, 0.62% and 0.03% respectively, with a year-on-year increase of + 2.73, -2.04, + 0.15 and -0.12 PCT respectively. The increase of sales expense rate was mainly caused by the increase of Direct stores and the increase of employee salary caused by the increase of proportion. During 22q1, the expense rate increased by 3.74pct to 23.50% year-on-year, and the expense rates of sales, management, R & D and finance were + 4.07, + 0.16, + 0.45 and -0.94pct year-on-year respectively.
Other financial indicators: 1) compared with the beginning of the year, the inventory at the end of the year increased by 9.49% to 8.12 billion yuan, and the inventory turnover days were 233 days, a year-on-year decrease of 30 days. In terms of stock age structure, the proportion of inventories within 1 year, 1 ~ 2 years and more than 2 years is 72% (compared with the beginning of the year + 12pct), 24% (- 9pct) and 4% (- 3PCT) respectively. At the end of the 21st century, the inventory structure was relatively benign.
The inventory at the end of March 22 was 8.562 billion yuan, an increase of 5.44% over the beginning of March 22, an increase of 17.65% year-on-year at the end of March 21, and the inventory turnover days were 263 days, an increase of 52 days year-on-year.
2) accounts receivable increased by 5.17% at the end of the year 21 compared with the beginning of the year 21, and increased by 0.16% year-on-year at the end of March 22, basically unchanged; The turnover days of accounts receivable in 21 years and 22q1 were 18 days and 18 days respectively, with a year-on-year increase of + 0.3 and + 1 days.
3) net operating cash flow increased by 54.09% year-on-year to 4.361 billion yuan in 21 years, and decreased by 24.25% year-on-year in 22q1. The haze of the short-term epidemic has yet to dissipate, and the undervalued and high dividend attributes provide stable returns
In 21 years, the company’s revenue and profit continued to recover steadily, but in the first quarter of 22 years, affected by the Chinese epidemic and the recovery rhythm was disturbed, we still need to pay attention to the recovery progress of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) demand in the short term. In the long run, the company is expected to have a broad space for parity and cost performance positioning. At the same time, small brands are still actively cultivated and the potential is expected to be released.
Considering that the short-term Chinese epidemic still suppresses the demand side and has uncertainty, we lowered the company’s EPS for 22-23 years and new 24 years to 0.59/0.71/0.81 yuan (28% and 22% lower than the previous profit forecast), corresponding to 8 times of pe22 years. The company has the attribute of undervalued value and high dividend. The dividend yield in 19-21 years was 5.75% / 5.26% / 10.47%, providing a stable return and maintaining the “buy” rating.
Risk tip: the impact of the epidemic in China exceeded expectations, resulting in weak terminal consumption; Abnormal weather; The decrease of terminal sell out rate leads to the increase of inventory pressure; Online growth is less than expected; Improper M & A integration, or the progress of small brand cultivation is less than expected.
