\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 933 Yonghui Superstores Co.Ltd(601933) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company realized a revenue of 91.062 billion yuan / – 2.29%, and the net profit attributable to the parent company was -3.944 billion yuan, from profit to loss; In the first quarter of 2022, the revenue was 27.243 billion yuan / + 3.45%, and the net profit attributable to the parent company was 502 million yuan / + 205354%.
Core view: the profit forecast of 2021 is in line with the previous express report, and the overall performance of 2022q1 exceeds the market expectation. We believe that the company’s rectification has achieved remarkable results, the inflection point of long-term operation has emerged, and the higher than expected profit in the first quarter is the result of the easing of competition, its own operation adjustment and the short-term prosperity catalyzed by the epidemic. The omni channel strategy has been steadily promoted, and the supply chain has further improved its efficiency. Behind the deepening of the layout of private brands and prefabricated dishes is the guarantee provided by the digital deep reconstruction of the company’s management structure and business model.
Comments:
In terms of revenue, the annual revenue in 2021 was 91.062 billion yuan / – 2.29%, and that in 2022q1 was 27.243 billion yuan / + 3.45%.
Stores: 40 in 2021 and 14 in 2022q1. In 2021, there were 1057 supermarket stores, 75 new Bravo stores and 14 closed stores. Although the opening speed of the company has slowed down significantly, it is still ahead of its peers, and it is expected to further accelerate with the subsequent adjustment of the single store model.
Online / offline structure: the online proportion continues to increase and the efficiency is significantly improved; Offline sales were more affected by the same store, and 22q1 began to improve.
Gross profit margin: the gross profit margin of 2021 company is 18.71% / – 2.67pct, and the gross profit margin of 2022q1 is 21.3% / + 1.1pct. In terms of sub regions, the operation is generally under pressure in 2021. In 2022, the southwest, South China, Southeast and other advantageous areas performed well, and the gross profit margin increased by 0.69, 3.07 and 1.59pcts respectively. There is a high degree of overlap with the prosperous areas of community group buying, and the easing of competition has a great boost to the gross profit margin.
In terms of expenses, the flattening of management and the continuous compression of digital procurement promoted the improvement of expense structure, which began to be gradually reflected in the second half of 2021. In addition, the company’s 2021 rate was under pressure from the same store sales pressure and accounting standards, and 2022q1 began to reap results.
Profit: the profit performance in 2021 is affected by operating pressure and various non recurring factors. After reducing the impact of non operating factors on the profit of 1.617 billion yuan, the actual loss is about 2.327 billion yuan; 2022q1 profit is 502 million yuan, deducting non net profit of 628 million yuan / + 263%.
Investment suggestion: we believe that 22q1 may be the inflection point of the company’s operation. There is a high probability that fresh retail modes such as community group purchase will be put into inflection point. Yonghui will further improve its efficiency and stand out in the format of hypermarkets, and promote online, private brand, human efficiency and supply chain efficiency with digitization. The long-term logic is clear and is expected to accelerate expansion; In terms of prosperity, we expect the annual growth to be sustainable. The net profit forecast for 20222023 was raised to RMB 1.01 billion and RMB 1.53 billion, and the net profit in 2024 was expected to be RMB 2.07 billion. The rating was raised to buy.
Risk tip: the promotion of digitization is not as expected, the epidemic situation is repeated, consumption is down, CPI is under pressure, etc
