\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 828 Red Star Macalline Group Corporation Ltd(601828) )
Event overview
The company released the first quarterly report of 2022. During the reporting period, the company achieved a revenue of 3.375 billion yuan, a year-on-year increase of 1.01%; The net profit attributable to the parent company was 698 million yuan, a year-on-year decrease of 3.4%; The non net profit deducted was 476 million yuan, a year-on-year increase of 15.3%. In terms of cash flow, the net cash flow from operating activities was 1.26 billion yuan, an increase of 71.1% over the same period last year, mainly due to the increase in the collection of merchant funds received in the current period.
Analysis and judgment:
Revenue side: self operated shopping malls grew rapidly
In Q1 2022, the company achieved a revenue of 3.375 billion yuan, a year-on-year increase of 1.01% and a month on month decrease of 18.85%. As of March 31, 2022, the company has operated 94 self operated shopping malls, 280 entrusted shopping malls and 10 home shopping malls through strategic cooperation. In addition, the company has authorized 64 home building materials projects by franchise, including 481 home building materials stores / industrial streets. At present, the company has 20 self operated shopping malls under preparation (including 16 self owned and 4 leased), with a planned construction area of about 3.01 million square meters (the final construction area approved by the government license document shall prevail); Among the entrusted shopping malls prepared, 325 contracted projects have obtained land use certificates / plots. The company has opened self operated shopping malls and achieved an operating revenue of 2.171 billion yuan during the reporting period, an increase of 11.3% over the same period of last year.
Profit side: significant decline in expense rate
On the profit side, in Q1 2022, the company achieved a gross profit margin of 61.46%, a year-on-year decrease of 1.05pct and a month on month increase of 3.69pct; Among them, the gross profit margin of self operated shopping malls was 76.1%, an increase of 1.8pct compared with the same period in 2021. The company achieved a net interest rate of 18.74%, a year-on-year decrease of 2.94 PCT and a month on month increase of 17.83 PCT. On the expense side, in Q1 2022, the company’s expense rate during the period was 36.03%, a year-on-year decrease of 3.88pct. Among them, the sales / management / financial expense rates were 8.24%, 10.38% and 16.91% respectively, with year-on-year changes of -2.66, -1.09 and -0.15pct. The R & D expense rate of the company increased by 0.02pct to 0.4%. In addition, the net income from changes in fair value of the company was 84 million yuan, a year-on-year decrease of 59.84%; The net investment income was 52 million yuan, a year-on-year decrease of 46.02%.
Investment advice
The company continues to promote “asset light, operation heavy and leverage reduction”. At the same time, it continues to enrich the channel structure and capture traffic from multiple dimensions. It is expected that the company will further expand home decoration business, soft decoration business and high-end home appliance retail business. We maintain the company’s profit forecast unchanged. The company’s operating revenue from 2022 to 2024 is 177.96/199.67/22.084 billion yuan, and the company’s EPS from 2022 to 2024 is 0.6/0.75/0.91 yuan, corresponding to the closing price of 4.99 yuan / share on April 29, 2022, and PE is 8.35/6.66/5.48 times respectively, maintaining the company’s “buy” rating.
Risk tips
1) real estate sales were lower than expected. 2) The expansion of the new retail model is not smooth.
