Wushang group ( Wuhan Department Store Group Co.Ltd(000501) )
The company's 1q2022 revenue decreased by 6.47% year-on-year, and the net profit attributable to the parent decreased by 34.20% year-on-year
On April 27, the company announced the first quarterly report of 2022: 1q2022 achieved an operating revenue of 1.874 billion yuan, a year-on-year decrease of 6.47%, a net profit attributable to the parent company of 176 million yuan, equivalent to a fully diluted EPS of 0.23 yuan, a year-on-year decrease of 34.20%, and a deduction of non attributable net profit of 176 million yuan, a year-on-year decrease of 30.98%.
The company's 1q2022 comprehensive gross profit margin decreased by 0.45 percentage points, and the expense rate during the period increased by 3.34 percentage points
1q2022 company's comprehensive gross profit margin was 43.79%, down 0.45 percentage points year-on-year.
1q2022 company's expense rate during the period was 28.05%, with a year-on-year increase of 3.34 percentage points, of which the sales / management / financial expense rate was 24.03% / 2.72% / 1.30% respectively, with a year-on-year change of + 3.36 / - 0.42 / + 0.40 percentage points respectively.
It was renamed Wushang group, which was greatly affected by the impact of the epidemic
The company issued an announcement on changing the company name on April 25, 2022. From April 26, 2022, the company name was changed from " Wuhan Department Store Group Co.Ltd(000501) " to "Wushang Group Co., Ltd.", the securities abbreviation was changed from " Wuhan Department Store Group Co.Ltd(000501) " to "Wushang group", and the securities code remained unchanged. The change of the company's name and securities abbreviation match the company's development strategy and operation, and will not have a significant impact on the company's production and operation.
In the first quarter of 2022, the company's revenue and profit declined to a certain extent, mainly due to the repeated impact of the epidemic, but in the long run, the company still has a strong regional competitive advantage in Wuhan. In 2021, the company made clear positioning, planned six systems including Wushang mall, Wushang dream era, Wushang city Aolai, Wushang supermarket, Wushang Hui and wushangli, created Wushang's new IP - "smiling angel" finless porpoise urban sculpture, and further strengthened the popularity and influence of "Wushang" brand in the market, which is conducive to the company's consolidation of its competitive position in Wuhan. The self owned property of the company has a large area and a high safety margin. By the end of 2021, the total construction area of the company's shopping center is about 1.32 million square meters, of which the construction area of self owned property is about 1.162 million square meters; The total construction area of the company's supermarket stores is about 588000 square meters, of which the construction area of its own property is about 125000 square meters.
Cut the profit forecast and maintain the "buy" rating
The company's performance was lower than expected, mainly due to the impact of the epidemic. In view of the uncertain recovery process of the epidemic and the intensified commercial competition of department stores in Wuhan after SKP settled in Wuhan in the future, we lowered our forecast of EPS for 2022 / 2023 / 2024 by 31% / 36% / 34% to 0.78/0.78/0.85 yuan. The company has certain competitive advantages in Wuhan, continuously improve the company's brand image and maintain the "buy" rating.
Risk tip: the progress of dream era project is lower than expected, and the competition in Hubei retail market is intensified.
