\u3000\u3 Shengda Resources Co.Ltd(000603) 214 Shanghai Aiyingshi Co.Ltd(603214) )
Event: Shanghai Aiyingshi Co.Ltd(603214) released the first quarterly report of 2022. In 2022q1, the operating revenue was 855 million yuan / yoy + 57.4%, and the net profit attributable to the parent company was – 12 million yuan / yoy-210.4%.
Revenue side: ① in terms of business types, the sales of stores (including o2o) in the first quarter was 630 million yuan / yoy + 35.04%, which was mainly driven by the year-on-year growth of beibeixiong stores, and the online business was 158 million yuan / yoy + 499.88%. We predicted that the main reason was the significant increase in the revenue of e-commerce agent operation business, wholesale was 04 million yuan / yoy + 75.77%, baby touch and other services were 08 million yuan / yoy + 40.01%, early education and related services were 004 million yuan, and other business revenue was 55 million yuan / yoy + 29.29%. We speculate that in the past, the company actively expanded the third-party e-commerce platform and online e-commerce agent operation business, and precipitated the private domain user traffic through self operated app, wechat mall and o2o real-time retail channels, resulting in a significant increase in the overall online business.
② by category, in the first quarter, the revenue of milk powder was 503 million yuan / yoy + 88.42%, the revenue of consumer goods was 145 million yuan / yoy + 20.94%, the revenue of cotton textile was 61 million yuan / yoy + 32.43%, the revenue of food was 60 million yuan / YoY + 46.81%, the revenue of toys was 21 million yuan / yoy + 6.34%, the revenue of baby touch service was 08 million yuan / yoy + 40.01%, the revenue of early education and related services was 40.4 million yuan, and the revenue of other businesses was 55 million yuan / yoy + 29.29%.
In terms of stores, by the end of the first quarter, the company had operated 508 stores, opened 4 new stores and closed 22 stores. Considering the impact of the epidemic and other factors, the company took the initiative to optimize the store structure, closed the last stores, and made a relatively cautious plan to open stores.
Gross profit margin: in 2022q1, the company realized a gross profit of 220 million yuan, with a gross profit margin of 25.3% / yoy-3.7pcts. The decrease in gross profit margin was mainly due to 1) in terms of categories, the revenue of milk powder with low gross profit margin increased rapidly, and the increase in the proportion led to the decline of the overall gross profit margin. 2) In terms of business format, the proportion of online businesses with low gross profit margin represented by e-commerce operation has increased significantly, driving the decline of the overall gross profit margin.
Expense side: the company’s rate during 2022q1 was 26.5%, a year-on-year decrease of 1.6pcts. The sales / management / Finance rates were 22.0% / 3.1% / 1.5% respectively, with a year-on-year increase of – 1.2pcts / – 0.4pcts / + 0.1pcts. We believe that the main reason for the decline in the rate of sales and management expenses is the closure of some stores under the influence of the company’s epidemic and the reduction of expenses. The increase of financial expense rate is mainly due to 1) the expansion of the business scale of M & A Beibei bear; 2) The new leasing standards and the interest expense arising from the new short-term borrowings to supplement working capital.
Profit side: in 2022q1, the company realized a net profit of – 10 million yuan / yoy-194.8%, and a net interest rate of – 1.2% / yoy-3.2pcts; The net profit attributable to the parent company is -0.12 billion yuan / yoy-210.4%, and the net interest rate attributable to the parent company is -1.4% / yoy-3.5pcts.
Investment suggestion: the merger and acquisition of beibeibei bear and the expansion of online business are progressing smoothly, and then continue to integrate Beibei bear and expand online business with the advantage of supply chain, which is expected to drive the company’s profits out of the downward channel. In the first quarter, affected by the epidemic, the operation of offline stores was under pressure, but we believe that the follow-up will be repaired or return to the upward channel with the epidemic. In the long run, diversified consumption, product segmentation and category expansion drive the continuous increase of per capita expenditure, and the social attention to fertility may potentially benefit the long-term and healthy development of the industry. It is estimated that the net profit in 202224 will reach 90 / 100 / 110 million yuan, and it is recommended to continue to pay attention.
Risk tips: changes in consumption habits; Macroeconomic downturn; The risk that the lease contract cannot be renewed upon expiration; Covid-19 epidemic risk of recurrence.
