\u3000\u3 China Vanke Co.Ltd(000002) 277 Hunan Friendship&Apollo Commercial Co.Ltd(002277) )
In 2021, the net profit attributable to the parent decreased by 5.99% year-on-year, and that of 1q2022 decreased by 46.61% year-on-year
On April 29, the company released the annual report of 2021 and the first quarterly report of 2022: in 2021, the operating revenue was 2.566 billion yuan, with a year-on-year increase of 10.93%, the net profit attributable to the parent was 131 million yuan, equivalent to 0.09 yuan of fully diluted EPS, with a year-on-year decrease of 5.99%, and the net profit deducted from non attributable to the parent was 113 million yuan, with a year-on-year decrease of 25.26%.
1q2022 achieved an operating revenue of 646 million yuan, a year-on-year decrease of 3.58%, a net profit attributable to parent company of 60 million yuan, equivalent to fully diluted EPS of 0.04 yuan, a year-on-year decrease of 46.61%, and a deduction of non attributable net profit of 59 million yuan, a year-on-year decrease of 47.81%.
In 2021, the company’s comprehensive gross profit margin increased by 1.77 percentage points, and the period expense rate increased by 1.34 percentage points. In 2021, the company’s comprehensive gross profit margin was 47.01%, a year-on-year increase of 1.77 percentage points. The comprehensive gross profit margin of 1q2022 company was 45.55%, a year-on-year decrease of 6.78 percentage points.
In 2021, the company’s expense ratio was 52.79%, with a year-on-year increase of 1.34 percentage points. Among them, the sales / management / Finance / R & D expense ratio was 18.36% / 21.59% / 12.56% / 0.28% respectively, with a year-on-year change of – 1.80 / + 0.33 / + 3.06 / – 0.25 percentage points respectively. 1q2022 company’s expense rate during the period was 48.81%, with a year-on-year increase of 2.75 percentage points, of which the sales / management / Finance / R & D expense rate was 13.32% / 20.92% / 14.43% / 0.14% respectively, with a year-on-year change of – 2.35 / + 2.38 / + 2.93 / – 0.21 percentage points respectively.
Continue to roll out convenience store business, introduce new liquor brands and promote the sinking of high-end liquor
In 2021, the company opened 25 new convenience stores and one olai store. By the end of 2021, the company has opened 58 stores (including 42 convenience stores) in Hunan Province and Tianjin, including 52 stores (including 42 convenience stores) in Changsha City, Hunan Province; 5 other cities in Hunan Province; One in Tianjin. Except that 16 of the convenience stores are franchise stores, all stores are direct stores. In terms of brand introduction, in 2021, the company took Maotai liquor as the core and signed a number of liquor brands one after another; Promote high-end cosmetics brands to sink to prefecture level cities for the first time, and launch the high-end first store plan in Hunan Dizhou market.
Cut the profit forecast and maintain the “buy” rating
The company’s performance was lower than expected, mainly due to the impact of the epidemic. In view of the certain uncertainty in the recovery process of the epidemic, we lowered the prediction of the company’s EPS in 2022 / 2023 by 70% / 68% to 0.06/0.07 yuan, and increased the prediction of the company’s EPS in 2024 by 0.07 yuan. The company continued to expand the convenience store business, continuously introduced new brands, improved user stickiness, and maintained the “buy” rating with Pb less than doubled.
Risk tip: the fierce competition in Hunan retail market intensifies, the cultivation period of new stores is longer than expected, and the promotion process of convenience stores is less than expected.
