The company's 1H2021 revenue increased by 47.59% over the same period last year, and the company's net profit increased by 140.80% over the same period last year. On August 28, the company announced that 1H2021 realized operating income of 1.294 billion yuan, an increase of 47.59% over the same period last year; realized net profit of 195 million yuan, equivalent to 0.14 yuan of fully diluted EPS, an increase of 140.80% over the same period last year; and realized deduction of 193 million yuan of non-home net profit, an increase of 94.32% over the same period last year.
In a single quarter, 2Q2021 achieved an operating income of 624 million yuan, an increase of 52.81% over the same period last year; a net profit of 82 million yuan, equivalent to a fully diluted EPS of 0.06 yuan, an increase of 95.29% over the same period last year; and a net profit of 81 million yuan, an increase of 29.53% over the same period last year.
The company's 1H2021 comprehensive gross profit margin rose 2.72 percent, and the expense rate decreased by 13.98 percent during the period. 1H2021's comprehensive gross profit margin was 49.73 percent, up 2.72 percent from the same period last year. In a single quarter, 2Q2021's comprehensive gross profit margin was 46.94%, down 5.38% from a year earlier.
The expense rate of 1H2021 during the period was 47.65%, down 13.98% from the same period last year, of which the sales / management / finance / R & D expense rate was 16.40% 19.30% and 11.55% 0.40% respectively, and the year-on-year change was-6.15 /-7.19 and 0.40% respectively. The expense rate of 2Q2021 during the period was 49.37%, down 13.97% from the same period last year, of which the sales / management / finance / R & D expense rates were 17.19% 20.12% 11.60% 0.45%, respectively, and the year-on-year changes were-3.93% /-9.13% /-0.78%% respectively.
The performance is in line with the forecast, and the performance of the company to build a 5G Internet of things smart home shopping platform is in line with the performance forecast issued by the company on July 14, 2021 (expected to achieve a net profit of 193.9216 million yuan-206.0417 million yuan). During the reporting period, the company opened 9 new convenience stores, and by the end of the reporting period, the company had a total of 26 7-Eleven convenience stores. During the reporting period, the company established a strategic partnership with China Telecom Corporation in Hunan to build a 5G Internet of things smart home shopping platform, and launched the "Youa Mall" on July 17, 2021. At the same time, the company continues to promote the digital construction of offline stores, and the city Olai Happy Store, which opened on May 28, has added intelligent experiential services.
Maintain earnings forecast and upgrade to "buy" rating
The company's results are in line with the forecast, and we maintain our forecast of 0.211x0.23x0.25 for the company's EPS for 2021 / 2022 / 2023. By the end of the reporting period, the company had 16 department stores and 26 convenience stores offline, as well as online shopping platforms such as "Youa overseas Shopping", "Youawei Store" and "Youashi Shopping". It has a strong scale advantage and competitive strength in Hunan Province. At present, the company's PB is about 0.6 times, which is at an all-time low, with a strong margin of safety, and has been upgraded to a "buy" rating.
Risk hint: the fierce competition in Hunan retail market is intensified, and the training period of new stores is longer than expected.