\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 933 Yonghui Superstores Co.Ltd(601933) )
Event: on April 29, the company released its 2021 annual report and 2022q1 quarterly report. In 2021, the company realized an operating revenue of 91.062 billion yuan / year-on-year – 2.29%, a net profit attributable to the parent company of -3.944 billion yuan (1.794 billion yuan in the same period last year), and a net profit not attributable to the parent company of -3.833 billion yuan (580 million yuan in the same period last year); In the fourth quarter, the operating revenue was 21.227 billion yuan / year-on-year + 3.40%, the net profit attributable to the parent was -1.766 billion yuan (the same period last year was -234 million yuan), and the net profit not attributable to the parent was -2.005 billion yuan (the same period last year was -939 million yuan). In 2022q1, the company achieved revenue of 27.243 billion yuan / year-on-year + 3.45%, net profit attributable to parent company of 502 million yuan / year-on-year + 205354%, net profit not attributable to parent company of 628 million yuan / year-on-year + 263.07%.
Affected by the competitive environment and a number of deductions, the net profit in 2021 is negative. 1) In 2021, the company continued to promote the optimization of exhibition stores and storefronts and the expansion of all channels: 75 new Bravo stores, 14 closed stores and 47 newly signed stores were opened throughout the year. By the end of the year, there were 1057 supermarket formats. At the same time, since May, the company has tried out the warehousing member store model, opened 53 stores in total, and obtained 32.9% of comparable stores; Online business made rapid progress, achieving sales of 13.13 billion yuan, accounting for 14.42%, of which home business was 7.1 billion yuan / + 21.1%. 2) However, due to the impact of the competitive environment and a number of deductions, the growth profitability is less than expected: the same store is expected to be negative in the whole year, with revenue of 91.062 billion yuan / – 2.29%, gross profit rate of 18.71% / – 2.67 PCT, sales expense rate / management expense rate / financial expense rate of 18.26% / 2.37% / 1.70% respectively. The expense rate during the period is + 3.2pct year-on-year. In addition to the impact of impairment, the net profit attributable to the parent company for the whole year is -3.944 billion yuan, with a large loss.
The operation of 2022q1 has improved significantly, and the gross profit and profit performance have improved. In 2022q1, due to the improvement of the business environment and its own ability, the company’s financial indicators are improving: 1) 14 new supermarket stores, 2 signed Bravo stores and steadily expand stores; 2) Online business continued to grow, with online sales reaching 4.04 billion yuan / + 9.9%, accounting for 14.1%, of which the self operated home business covered 988 stores, realizing sales of 2.15 billion yuan / + 9.2%; 3) The gross profit margin was 21.28% / + 1.08pct, and the sales expense rate / management expense rate / financial expense rate were 14.72% / 1.65% / 1.47% respectively, which decreased year-on-year. Overall, in 2022q1, the company achieved revenue of 27.243 billion yuan / year-on-year + 3.45%, net profit attributable to the parent company of 1.84%, operating cash flow of 2.589 billion yuan / year-on-year + 80.02%, and its operating capacity was significantly improved.
Investment suggestion: the company is the leader of the offline supermarket of Johnson & Johnson fresh supply chain. Since the second half of 2020, new channels such as community group purchase have attacked, the operation of the company has been challenged, and the current competitive environment of the company has been significantly improved. It is estimated that the operating revenue from 2022 to 2024 will be about 98.3 billion / 104.2 billion / 110.5 billion respectively, the net profit attributable to the parent company will be 244 million / 571 million / 666 million respectively, and the EPS will be 0.03 yuan / share, 0.06 yuan / share and 0.07 yuan / share respectively, maintaining the “buy” rating and the target price will be 5 yuan / share.
Risk tip: the industry competition is obviously intensified; The improvement of the company’s operation is less than expected.
