\u3000\u3 Shengda Resources Co.Ltd(000603) 708 Jiajiayue Group Co.Ltd(603708) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company realized a revenue of 17.433 billion yuan / + 4.52%, and the net profit attributable to the parent company was -293 million yuan, from profit to loss; In the first quarter of 2022, the revenue was 5.108 billion yuan / + 8.32%, and the non net profit attributable to the parent deduction was 125 million yuan / + 5.04%.
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 2021 company is not as expected due to the weak consumption in core areas and the cultivation of regional stores with new layout. In 2022q1, under the background of slowing competition, the same store of the company improved with the month on month, but it was relatively weak. The trend of the company was under pressure, but the progress of improving the efficiency of new store cultivation shown in the first quarterly report was more than expected. The company’s digitization, personnel flow, supply chain optimization and store optimization were carried out simultaneously, or the double-click logic of profit and expansion growth was more flexible.
Comments:
In terms of revenue, the annual revenue in 2021 was 17.433 billion yuan / + 4.52%, and that in 2022q1 was 5.108 billion yuan / + 8.3%.
Stores: in 2021, the company will have a net increase of 74 to 971 Direct stores and 47 franchise stores; In 2022q1, the company’s Direct stores decreased by 8 to 962 and 38 franchise stores. Among them, in 2021, there were 26 consolidated weilehui, 91 newly opened and 43 closed stores; In 2022q1, 8 New Direct stores were opened and 17 closed.
The same store has great pressure in 2021, which is mainly affected by repeated epidemics, weakening consumption expectations, diversified channels and low CPI of fresh food; In 2022q1, the same store of the company improved, but the recovery progress before the epidemic was weaker than that of the same industry. We think it is still related to the distribution of the company’s stores in Jiaodong, where the consumption recovery is weaker than that of the whole country. After entering March, the same store performed strongly.
Gross profit margin: the gross profit margin of 2021 company is 23.26% / -0.22pct, basically stable; In 2022q1, the gross profit margin was 24.0% / – 0.5pct. The gross profit margin of Yanwei region increased, but the gross profit margin was dragged down by new stores, new business type member stores and discount stores. The gross profit margin of single store of the company was increased for a long time, and the proportion of background revenue was steadily increased. However, the gross profit margin of single store fluctuated due to the cultivation of new stores.
In terms of expenses, the company’s expense control is relatively stable, which is mainly affected by store sales, scale effect and accounting standards.
Profit: the net profit attributable to the parent company in 2021 is -293 million yuan, and the non net profit attributable to the parent company in 2022q1 is 125 million yuan / + 5.04%. In 2021, the decline in profits was mainly due to the loss during the cultivation period of new stores, the decline in the income of comparable stores in mature regions, and the provision of 297 million goodwill of weilehui and Weike chain, which restored the actual profits of goodwill; The profit growth of 2022q1 company was due to the growth of revenue, the improvement of supply chain efficiency, human control and the improvement of performance in Anhui, Zhangjiakou and weilehui. The one-time amortization expense of store closure was about 17 million. After excluding these factors, the actual non net profit attributable to the parent deduction increased by about 17% year-on-year.
Investment suggestion: we believe that 22q1 company has made significant progress in the cultivation of new stores in other regions of Shandong and outside the province. There is still broad space for the company to develop in Jiaodong, Luxi and outside the province. The business format of the company’s small stores has strong competitiveness and market toughness, and the expansion logic of M & A and expansion is expected to be verified again. As the gross profit margin of Jiaodong and the progress of improving efficiency outside the province were higher than previously expected, we raised the net profit from 20222024 to 471 million, 915 million and 1335 million (previous value: 154 / 560 million in 20222023), maintaining the rating of “overweight”.
Risk tips: macroeconomic fluctuations; Risk of market competition; Risks of new area and new store expansion
