\u3000\u3 Shengda Resources Co.Ltd(000603) 877 Ningbo Peacebird Fashion Co.Ltd(603877) )
22q1 revenue and net profit attributable to parent decreased by 8% and 6% respectively year-on-year
In 22q1, the company realized an operating revenue of 2.464 billion yuan, a year-on-year decrease of 7.74%, a net profit attributable to the parent of 190 million yuan, a year-on-year decrease of 6.44%, and a deduction of non net profit of 112 million yuan, a year-on-year decrease of 40.24%; EPS is 0.40 yuan. Non net profit deduction decreased significantly, mainly because the epidemic affected sales. At the same time, the base was high last year. The growth rate of net profit attributable to the parent was faster than that of non net profit deduction, which was mainly due to the significant increase of government subsidies affected by the epidemic year-on-year.
The income of Pb women’s wear and leting fell, while that of Pb men’s wear grew steadily and that of MP children’s wear was basically the same
Revenue is split by brand: the revenue of main brands Pb women’s wear and Pb men’s wear is 962 million yuan (year-on-year – 12.37%), 827 million yuan (+ 4.27%), and that of leting, MP children’s wear and other brands is 284 million yuan (- 21.75%), 314 million yuan (- 0.58%) and 63 million yuan (- 22.02%).
Revenue is split according to Wuxi Online Offline Communication Information Technology Co.Ltd(300959) price: online channel revenue accounts for 32% of total revenue, with a year-on-year decline of 3.00% and offline channel revenue down 9.55%. In offline channels, the revenue of Direct stores and franchise stores accounted for 48% and 20% of the total revenue, with a year-on-year decrease of – 12.89% and – 0.51% respectively. The large decline of Direct stores was mainly caused by the impact of the epidemic and the company’s active contraction of inefficient stores; Franchisees were flat year-on-year, mainly due to the net opening of franchisees last year and the company’s proper control of terminal inventory. In the first quarter, even under the background of the epidemic, the shipment to franchisees was still relatively smooth.
Offline stores: at the end of March 22, the total number of stores of the company was 5074, a net decrease of 140 (- 2.69%) compared with the beginning of the year. Among them, the number of Direct stores decreased by 26 (- 1.61%), and the number of franchise stores decreased by 114 (- 3.17%); In terms of brands, Pb women’s clothing has the most net closed stores and 94 net closed stores, Pb men’s clothing and leting have 30 and 18 net closed stores respectively, MP children’s clothing has 2 net closed stores, and other brands are flat in total.
The gross profit margin decreased, the expense rate increased, and the inventory and accounts receivable decreased compared with the beginning of the year
Gross profit margin: 22q1 decreased by 1.68pct year-on-year to 54.19%. In terms of brands, the gross profit margins of Pb women’s wear, Pb men’s wear, leting, MP children’s wear and others are 55.93% (- 3.25pct), 54.64% (+ 0.11pct), 49.53% (- 6.30pct), 54.66% (+ 1.63pct) and 46.44% (+ 5.33pct) respectively. By channel, the gross profit margins of Direct stores, franchise stores and online stores are 64.31% (- 2.38pct), 46.89% (- 3.51pct) and 44.06% (+ 2.38pct) respectively.
Period expense rate: 22q1 increased by 1.34pct to 46.11% year-on-year, of which the expense rates of sales, management, R & D and finance were 37.54% (year-on-year + 0.50PCT), 6.70% (+ 0.93pct), 1.11% (-0.09pct) and 0.76% (-0.01pct) respectively.
Other indicators: 1) the inventory at the end of March 22 was 2.265 billion yuan, a decrease of 10.83% over the beginning of the year and an increase of 5.37% over the end of March 21; Inventory turnover days were 192 days, an increase of 23 days year-on-year. 2) The accounts receivable at the end of March 22 was 480 million yuan, a decrease of 24.02% compared with the beginning of the year and 22.27% compared with the end of March 21; The turnover days of accounts receivable were 20 days, with a year-on-year decrease of 3 days. 3) 22q1 net operating cash flow was – 228 million yuan, with a year-on-year increase of 15.96%.
Profit forecast and investment suggestions: 22q1 is affected by the epidemic, the company’s sales are under pressure, and we still need to pay attention to the progress of epidemic prevention and control and the recovery of consumption environment in the short term. The company will continue to pay attention to the improvement of profitability, strengthen inventory management, pay attention to the cost control of Direct stores, continue to steadily expand franchise and e-commerce business, and expect the annual performance to digest the twists and turns brought by the epidemic and gradually improve. We maintain the company’s profit forecast for 22-24 years. Calculated according to the latest equity, the corresponding EPS for 22-24 years are 1.68, 1.99 and 2.31 yuan respectively, and the PE for 22-23 years are 11 times and 9 times respectively, maintaining the “overweight” rating.
Risk tip: the impact of epidemic or extreme weather is higher than expected, and the terminal sales are weak due to the slowdown of macroeconomic growth; The cost control is less than expected; Intensified online competition, increased traffic costs and ineffective expansion of some platforms have resulted in less than expected growth or impaired profitability; Inventory backlog.
