\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 859 Wangfujing Group Co.Ltd(600859) )
The company’s 1q2022 revenue decreased by 4.08% year-on-year, and the net profit attributable to the parent company increased by 19.45% year-on-year
On April 29, the company announced the first quarterly report of 2022: 1q2022 achieved an operating revenue of 3.314 billion yuan, a year-on-year decrease of 4.08%, a net profit attributable to the parent company of 377 million yuan, equivalent to a fully diluted EPS of 0.33 yuan, a year-on-year increase of 19.45%, and a deduction of non attributable net profit of 91 million yuan, a year-on-year decrease of 61.18%. The company’s non recurring income was 285 million yuan, including 301 million yuan of investment income from the acquisition of shopping center companies.
The company’s 1q2022 comprehensive gross profit margin increased by 0.94 percentage points, and the period expense rate increased by 7.14 percentage points
The comprehensive gross profit margin of 1q2022 company was 40.94%, with a year-on-year increase of 0.94 percentage points.
1q2022 company’s expense rate during the period was 31.80%, with a year-on-year increase of 7.14 percentage points, of which the sales / management / financial expense rate was 13.18% / 15.90% / 2.72% respectively, with a year-on-year change of + 2.65 / + 2.94 / + 1.55 percentage points respectively.
Further acquisition of shopping center companies is greatly affected by the impact of the epidemic
The company’s net profit deducted from non parent company decreased by 61.18% year-on-year, mainly due to: 1) the phased closure of stores in some regions due to epidemic control in some regions. The company’s operating revenue increased by 3.95% year-on-year from January to February 2022 and decreased by 17.69% year-on-year in March 2022. In terms of business type, the company’s Olay business type was the most affected by the epidemic. Five of the 12 Olay stores closed for more than 10 to 20 days in the first quarter, and the business hours of two stores were affected for more than one month; In April 2022, more than 20 stores of the company still had special business conditions such as closing stores and shortening business hours. 2) After the company completed the absorption and merger of shoushang shares in 2021, the accounting method of relevant expenses of the original shoushang shares has been adjusted to a certain extent. 3) 1q2022 company’s interest income decreased significantly, with a year-on-year decrease of 72.85 million yuan, a year-on-year decrease of 57%.
In January 2022, the company completed the acquisition of 12% equity of Beijing Wangfujing Group Co.Ltd(600859) Shopping Center Management Co., Ltd. (hereinafter referred to as “shopping center company”). After the acquisition, the company held 60% equity of the shopping center company and included the shopping center company into the scope of consolidation. According to the relevant provisions of accounting standards, the company recognized investment income of 301 million yuan and goodwill of 376 million yuan in the consolidated statements.
Cut the profit forecast and maintain the “buy” rating
The company’s net profit deducted from non parent company was lower than expected, mainly due to the impact of the epidemic. In view of the uncertain recovery process of the epidemic, we lowered our forecast of EPS for 2022 / 2023 / 2024 by 18% / 17% / 17% to 1.06/1.17/1.27 yuan. As a national department store leader, the short-term epidemic impact does not change the long-term growth logic and maintains the “buy” rating.
Risk tip: the promotion of tax-free business did not meet expectations, and the speed of store integration did not meet expectations.
