\u3000\u3 China Vanke Co.Ltd(000002) 352 S.F.Holding Co.Ltd(002352) )
Performance
On April 28, S.F.Holding Co.Ltd(002352) released the first quarter report of 2022. In 2022q1, the company realized a revenue of 62.984 billion yuan, a year-on-year increase of 47.78%; The net profit attributable to the parent company was 1.022 billion yuan, a year-on-year increase of 203.35%; The net profit deducted from non return to parent was 912 million yuan, a year-on-year increase of 180.42%.
Analysis
Express revenue decreased slightly and Kerry’s consolidated revenue increased significantly. By business, Q1’s revenue from express service business was 39.6 billion yuan, a year-on-year decrease of 1%. Among them, due to the closure and control of some cities in China affected by the epidemic in March, the number of company pieces fell, and the express business volume of Q1 company was 2.43 billion, a year-on-year decrease of 2%; The market share was 10%, down 1.3pct year-on-year. The express ticket revenue of Q1 company was 16.3 yuan, a year-on-year increase of 1%, mainly due to the company’s optimization of product structure. Q1 company’s revenue from supply chain business was 20.2 billion yuan, with a year-on-year increase of 784%. The rapid growth was mainly due to the consolidation of Kerry Logistics.
Under the multi pronged approach, Q1 turned losses into profits year-on-year. In Q1, the company’s gross profit margin was 12.3%, with a year-on-year increase of 5.1pct; The net interest rate was 2.32%, with a year-on-year increase of 5.0pct. The improvement of profit mainly came from: (1) continuously focusing on the core logistics strategy and emphasizing sustainable and healthy development; (2) Optimize the product structure and reduce the number of products with low gross profit; (3) Adhere to lean cost control, improve input-output efficiency, continue to promote the integration of four networks, strengthen the integration of site and line resources, and strengthen the resource coordination across business sectors during the Spring Festival; (4) Business profitability improved and new businesses reduced losses year-on-year; (5) Merge Kerry Logistics from 2021q4.
The launch of equity incentive plan is expected to drive the long-term growth of performance. On April 28, the company announced the 2022 stock option incentive plan (Draft), which plans to grant no more than 60 million stock options to incentive objects, with an exercise price of 42.61 yuan / share. The equity incentive plan is expected to align the core talents more closely with the interests of shareholders and the company, and drive the continuous growth of the company’s long-term operating performance. According to the plan, the company’s performance indicators and individual performance indicators will be assessed annually from 2022 to 2025, and the right can be exercised only after reaching the assessment objectives. The assessment requirements at the company level are as follows: the operating income from 2022 to 2025 will not be less than 270 billion yuan, 315 billion yuan, 370 billion yuan and 435 billion yuan, or the net profit margin attributable to the parent company will not be less than 2.1%, 2.6%, 2.9% and 3.3%.
Investment advice
Maintain the company’s net profit forecast of 7.6 billion yuan, 11 billion yuan and 14.5 billion yuan from 2022 to 2024, with a year-on-year increase of 78%, 45% and 31% respectively. Maintain the “buy” rating.
Risk tips
The risk of macroeconomic fluctuation, the risk of sharp rise in labor costs, the risk that the improvement of capacity utilization is less than expected, the risk that the development of new business is less than expected, and the risk that shareholders reduce their holdings.
