\u3000\u30 Shenzhen Quanxinhao Co.Ltd(000007) 85 Easyhome New Retail Group Corporation Limited(000785) )
Event overview
The company released the first quarterly report of 2022. In 2022q1, the company's revenue was 3.105 billion yuan, a year-on-year increase of - 7.30%; The net profit attributable to the parent company was 505 million yuan, a year-on-year increase of - 18.25%; The net profit attributable to the parent company after deducting non profits was 572 million yuan, a year-on-year increase of - 6.86%. From the beginning of 2022 to March 31, 2022, some stores of the company were temporarily closed due to the impact of the epidemic, which had a certain impact on the production and operation of the company, and the revenue decreased year-on-year; The decline in profit side growth rate was mainly due to the increase in the impairment loss of accounts receivable accrued by the company affected by the epidemic and the closure of Yinchuan children's city, which recognized the income from asset disposal according to the new leasing standards. In terms of cash flow, the net cash flow generated from Q1's operating activities in 2022 was 1.44 billion yuan, a year-on-year increase of + 21.30%, mainly due to the good return speed of the company's funds and the higher growth rate of cash inflow from operating activities than that of cash outflow from operating activities.
Analysis and judgment:
Revenue side: due to the impact of the epidemic, the revenue decreased year-on-year. The company actively responded to the development of online channels and accelerated the digital transformation
In 2022q1, the company achieved a revenue of 3.105 billion yuan, a year-on-year increase of - 7.30%, mainly due to the temporary closure of some stores in Jilin, Liaoning, Hebei, Henan, Fujian and other provinces with serious epidemic diseases from the beginning of 2022 to March 31, 2022, and the growth rate of revenue decreased year-on-year. The company has taken a number of measures to actively respond to the impact of the epidemic. 1) it has strengthened online channel marketing, intensified "intra city station" marketing, intensified traffic acquisition, content grass planting and live broadcasting on tmall, Taobao, wechat, Tiktok, xiaohongshu and other third-party platforms, and spared no effort to build a marketing system for private traffic grass planting, customer acquisition, distribution and transformation with "wechat applet + enterprise wechat" as the core. 2) With "Dongwo" as the core, build a private domain traffic platform to realize the digitization of the whole consumption process of online product selection, store experience, departure decision-making and after-sales service. At the same time, empower home stores, factories and dealers to create collaborative value; And build a digital industry service platform of s2b2c mode to accelerate the pace of digital transformation. 3) Join hands with merchants for heating and carry out joint marketing with factories and merchants.
Profit side: the profitability declined slightly, and the expense rate increased during the period
In 2022q1, the gross profit margin and net profit margin of the company were 45.85% and 16.88% respectively, with a year-on-year decrease of -0.32pct and -1.98pct respectively. The profitability declined. The decline of net profit margin was greater than that of gross profit margin, mainly due to the increase of expense rate during the period. In terms of period expense rate, the period expense rate of 2022q1 company was 19.39%, with a year-on-year increase of + 1.13pct, of which the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 7.43%, 3.71%, 0.03% and 8.22% respectively, with a year-on-year increase of + 1.44pct, + 0.67pct, + 0.03pct and -1.00pct. The increase of sales expense rate is expected to be due to the company's increasing investment in online marketing.
Investment suggestions:
Considering that the company continues to expand new categories, explore new brands, and strive to explore the integration of large home and large consumption, as well as the company's digital transformation and increase relevant operation investment, we maintain the previous profit forecast, and the company's revenue in 22-24 years is expected to be 15.023 billion yuan, 17.486 billion yuan and 20.588 billion yuan respectively; EPS is 0.40, 0.46 and 0.54 yuan respectively, corresponding to the closing price of 3.99 yuan / share on April 28, 2022. The PE of 22-24 years is 11 / 9 / 8 times respectively, maintaining the "buy" rating.
Risk tips:
Repeated outbreaks; The completion of the property is less than expected; The company's new retail and digital transformation are not as expected.
