The company disclosed that in the first half of 2021, the company realized operating income of 6.334 billion yuan, down 10.4% from the same period last year, realized net profit of 7.7213 million yuan, an increase of 80.29 million yuan over the same period last year, deducted non-net profit of-31.6895 million yuan, and reduced losses by 124 million yuan over the same period last year.
Event comment
The company's quarterly revenue decline narrowed, the company's quarterly operating profit month-on-month profit. The company's operating income in the first half of the year was 6.334 billion yuan, down 10.4% from the same period last year, including 11.28% for supermarket business and 100.45% for department store business. From a quarterly point of view, the company's Q1/Q2 revenue decreased by 11.76% and 8.67% respectively compared with the same period last year, while the company's gross profit margin in the second quarter was 25.07%, down 0.1% from the same period last year, the corresponding gross profit decreased by 9.04%, the sales expense rate decreased by 0.61% year-on-year, and the management expense rate decreased by 0.07% compared with the same period last year, indicating that the company's overall expense control is relatively good. The financial expenses were 30.7076 million, an increase of 25.7787 million yuan over the same period last year, mainly due to the implementation of the new lease standard, the financing cost of new right-to-use assets in the first half of the year was 37.285 million yuan, which comprehensively made the company's operating profit (gross profit-business tax-management expenses-sales expenses-financial expenses-R & D expenses) of 14.94 million yuan in the second quarter, an increase of 3323 yuan over the first quarter, a decrease of 70.24% compared with the same period last year. Or most of it is due to the increase in the provision of current expenses due to the new lease criteria.
The company steadily promotes the extension of the store and optimizes the endogenous management ability at the same time, and the operation efficiency is expected to be further improved.
In the second quarter, the company's warehousing supermarket stores were flat compared with the previous quarter, with a net increase of 11 convenience supermarkets and 39 Zhongbu Rosen convenience stores, of which the number of convenience stores in Hunan has reached 85, steadily expanding stores. On this basis, the company continues to optimize the efficiency of endogenous management: 1) actively promote the optimization of commodity structure, introduce 2323 new products in Zhongbai warehouse, promote the direct acquisition of fresh goods, accounting for 68.45%, 1041 new products are introduced in Zhongbai supermarket, 1136 products are eliminated, the renewal rate of new products in Zhongbai convenience store is 57.55%, and so on. 2) enhance online and offline capabilities to optimize user experience, actively carry out new businesses such as live streaming, group shopping, and community marketing, and promote the construction of their own online platforms. Optimize and improve the business functions and interface design of own platforms such as "Zhongbai Neighbourhood purchase", "Zhongbaihui Tuan" and "Komori selection". Relying on third-party platforms, online sales increased by 108.12% in the first half compared with the same period last year, accounting for 8.73% of total sales.
Investment suggestion: the company has outstanding regional advantages, the supply chain system is constantly improving, and the performance inflection point is expected to continue. The company has been ploughing the local market in Hubei for many years, actively arranging all channels, exploring new retail formats, and continuously promoting the construction of cold chain logistics and central warehouse to enhance the company's regional competitiveness. At the same time, the company actively strengthens its internal management and works with excellent supermarket enterprises to promote the efficiency optimization of supply chain and store management. We expect that the company's performance inflection point is expected to continue. The current market capitalization is only 0.25 times 2021 revenue PS, maintaining a "buy" rating.
Risk hint
1. The acceleration of new entrants to the regional market further intensifies the competition.
two。 The company new business type layout management effect cash speed is slow.