\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 828 Red Star Macalline Group Corporation Ltd(601828) )
Event:
The company released 2022q1 results: 22q1 achieved an operating revenue of 3.375 billion yuan, a year-on-year increase of 1%, a net profit attributable to the parent of 698 million yuan, a year-on-year decrease of 3.4%, and a net profit attributable to the parent after deduction of non-profit of 476 million yuan, a year-on-year increase of 15.3%, with a basic earnings per share of 0.16 yuan / share.
Guoyuan view:
Steadily implement the strategy of “light assets and heavy operation”, and the main stores maintain high-quality growth. As of 22q1, the company operates 94 self operated shopping malls and 280 entrusted shopping malls, 10 home shopping malls and 64 franchised home building materials projects through strategic cooperation. In terms of self operated business, 22q1 self operated shopping malls achieved a revenue of 2.171 billion yuan, a year-on-year increase of 11.3% and a gross profit margin of 76.1% (+ 1.8pct). Focusing on the strategy of “focusing on operation”, the company comprehensively upgraded stores and optimized the operation efficiency of stock stores through multiple stores, landing nine theme pavilions and expanding new categories. Specific measures during 22q1 include: ① carrying out the “315 wanton hi Shopping Festival”, with a year-on-year increase of 118% in sales during the activity period, Joint marketing fund increased by 48% year-on-year; ② During the epidemic period, rich online marketing activities were carried out to leverage Amoy’s public domain and brand private domain to store customers, and the forward-looking layout laid a solid foundation for the restart after the epidemic. In terms of entrusted management business, the rental rate of 22q1 entrusted management mall is 90.4%. 325 contracted projects in the prepared entrusted management mall have obtained land use rights / plots, and the number of third tier and below cities accounts for more than 70%. In recent years, the company has transformed to light asset expansion, and steadily penetrated the sinking market on the premise of saving capital expenditure.
The ability to control expenses was gradually strengthened, and the operating cash flow was stable and abundant
In terms of gross profit margin, the gross profit margin of 22q1 company was 61.46%, with a year-on-year increase of -1.05pct, maintaining a stable and slightly decreasing trend; In terms of expense rate during the period, the sales expense rate / management expense rate / R & D expense rate / financial expense rate were 8.24% / 10.48% / 0.40% / 16.91% respectively, with a year-on-year rate of -2.66 / – 1.09 / + 0.02 / – 0.15pct, and the company’s expense control ability was gradually strengthened. In addition, the company steadily implemented the “leverage reduction” strategy. The 22q1 asset liability ratio was 57.49%, and the net cash from operating activities was 1.260 billion yuan, an increase of 71.14% year-on-year. The asset structure continued to be optimized.
Investment advice and profit forecast
As the leader of chain home stores, on the one hand, the company deeply cultivates the main store business, improves the operating efficiency of stock stores and accelerates the penetration into low-level cities. On the other hand, it actively promotes the expansion business and constructs a comprehensive and multi-channel Pan home ecosystem. It is estimated that the company’s operating revenue will be 17.489/19.317/20.976 billion yuan and the net profit attributable to the parent company will be 27.53/34.50/38.07 billion yuan respectively from 2022 to 2024, with the corresponding EPS of 0.63/0.79/0.87 yuan respectively, The current share price corresponding to PE is 7.89/6.30/5.71 times, maintaining the “buy” rating.
Risk tips
The company’s digitization and new retail transformation are less than expected, the expansion of entrusted shopping malls is less than expected, and the fluctuation of the real estate market affects the risk of the home industry.
