The company's 1-3Q2021 revenue increased by 27.95% over the same period last year, and the company's net profit increased by 25.97% over the same period last year. On October 27, the company announced that 1-3Q2021 realized operating income of 1.902 billion yuan, an increase of 27.95% over the same period last year, and realized net profit of 209 million yuan, equivalent to 0.15 yuan of fully diluted EPS, an increase of 25.97% over the same period last year. Realized deduction of non-return net profit of 200 million yuan, an increase of 10.82% over the same period last year, and the company's performance was lower than expected.
In a single quarter, 3Q2021 achieved an operating income of 608 million yuan, a decrease of 0.28% over the same period last year; a net profit of 14 million yuan, equivalent to a fully diluted EPS of 0.01yuan, a decrease of 83.13% over the same period last year; and a non-return net profit of 7 million yuan, a decrease of 91.32% over the same period last year.
The company's 1-3Q2021 comprehensive gross profit margin increased by 0.67%, and the expense rate decreased by 6.40% during the period. 1-3Q2021's comprehensive gross profit margin was 47.31%, an increase of 0.67% over the same period last year. In a single quarter, 3Q2021's comprehensive gross profit margin was 42.17%, down 3.96% from a year earlier.
The period expense rate of 1-3Q2021 company was 49.58%, down 6.40% from the same period last year. Among them, the sales / management / finance / R & D expense rate was 17.32% 20.04%, 11.90% and 0.32%, respectively, and the year-on-year change was-3.49% /-3.63%. 0.98%, respectively, 0.28%. The expense rate of 3Q2021 during the period was 53.67%, an increase of 5.81% over the same period last year, of which the sales / management / finance / R & D expense rate was 19.27%, 21.61%, 12.64%, 0.16%, respectively, and the year-on-year change was + 0.97 / + 2.01 / + 3.21, 0.39 percentage points respectively.
The performance was lower than expected, and the recurrence of the epidemic in Hunan in August was the main cause.
The company is the largest department store retail enterprise in Changsha and Hunan Province, basically covering the core business areas of Changsha, Chenzhou, Changde, Shaoyang and other cities. In the first half of 2021, the company's top 10 stores are all located in Hunan. In early August, an epidemic occurred in Zhangjiajie, Hunan, and then Hunan entered a state of prevention and control, until August 25, the whole of Hunan turned into a low-risk area, which had an obvious impact on the company's offline personnel flow and sales in August, resulting in the company's third-quarter performance below expectations.
Downgrade earnings forecast and maintain "buy" rating
The company's performance was lower than expected, mainly due to the impact of repeated outbreaks in some areas of Hunan Province on offline retail in August. In view of the uncertainty about the recovery of the epidemic, we lowered our forecast for the company's 2021 / 2022 / 2023 EPS by 19%, 17%, 16% to 0.17, 0.19 / 0.21 yuan. The company continues to promote the digital construction of offline stores, and has certain regional advantages in Hunan Province. at present, the company's PB valuation is 0.6 times, which is in the historically low quantile, has a certain investment value in the long run, and maintains 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.