Performance review
2021 results are in line with previous performance forecasts
The company announced 2021 results: revenue of 12.331 billion yuan in 2021, a year-on-year decline of 6.1%. Net loss of 22.48 million yuan in 2021, net profit of 43.13 million yuan in the same period of 2020, non-net loss of 104 million yuan in 2021, non-net profit of 48.82 million yuan in the same period of 2020. the performance is in line with the previous performance forecast. Quarter-by-quarter, 1Q/2Q/3Q/4Q21 revenue year-on-year-11.8% CPM 8.7% RMB4.9% CPM 3.1%, growth improved quarter-on-quarter; deduction of non-net loss of 0.23 pound 0.09 pound 0.45 trillion yuan, respectively, deduction of non-net profit / loss in the same period of 2020-1.98 pound 0.42 pound "108 pound" 0.96 million.
Trend of development
1. Revenue in 2021 fell 6.1% from the same period last year. In 2021, 1) supermarket business: annual revenue dropped by 7.9%. In terms of store efficiency, revenue from comparable stores in Hubei / Chongqing / supermarkets decreased by 12.6%, 20.6% and 18.0% respectively compared with the same period last year. During the reporting period, supermarket formats strengthened commodity dynamic management. Warehousing / community supermarkets respectively introduced 5578x1861 new products, with a commodity update rate of 32.81% 22.22%. Department store business: annual revenue increased by 62.0%. Comparable department store revenue increased by 38.9% over the same period last year, mainly due to the low base caused by the closure of department stores during the 2020 epidemic control period. The company has a total of 1539 outlets at the end of the year, including 682 in warehouses / supermarkets / convenience stores / department stores / industrial and trade appliances, respectively, with a net increase of 3% over the end of 2020, compared with that at the end of 2020. In 2022, the company plans to add 285 outlets and 230 warehouses / supermarkets / convenience stores respectively.
2. Profitability will be impaired in 2021. In 2021, gross profit margin increased by 1.2ppt to 25.1% compared with the same period last year, mainly due to the introduction of new products in supermarket format, and increased 1.4ppt to 24.1% in supermarket format. The rate of sales expenses decreased by 0.2ppt to 19.6%, the rate of management expenses increased by 0.3ppt to 3.9%, and the rate of financial expenses increased by 0.9ppt to 1.1% compared with the same period last year, mainly due to the implementation of the new leasing standards. The financing fee of the new right-to-use assets increased by 112 million yuan. Under the combined influence, the net interest rate dropped by 0.5ppt to-0.2% compared with the same period last year, and the non-net interest rate decreased by 1.2ppt to-0.8% compared with the same period last year. The company's profitability was impaired, mainly due to repeated epidemics and increased competition in the industry. The superimposed policy subsidy was reduced by 82 million yuan compared with the same period last year, and the impact of the new leasing standard.
3. Pay attention to the progress of business format transformation. 1) in the aspect of digitization, 100 million yuan was invested to set up Digital Zhiyun Technology Company, to promote the construction of data centers and online platform projects, and during the reporting period, self-research platforms such as "Zhongbai Neighbourhood Shopping" and Mini Program were fully launched; 2) in terms of stores, the reform of management mechanism was deepened. by the end of the reporting period, a total of 321 stores had realized "partnership and internal membership", with more than 12000 employees involved. To speed up the layout of convenience stores, Zhongbai Rosen currently has a total of 633 stores and 14 cities; improve the operation quality of old supermarkets, upgrade 12 stores in warehousing, and adjust and upgrade 68 old stores in community supermarkets.
Profit forecast and valuation
To maintain the 2022 earnings forecast of 0.04 yuan per share, while introducing the 2023 earnings forecast of 0.08 yuan per share, the current stock price corresponds to 64 times Pqure E in 2023, maintaining a neutral rating, taking into account the increasing competitive pressure of the company, lowering the target price by 19% to 4.4 yuan, corresponding to 59 times Pmax E in 23, corresponding to 8% downside space.
Risk.
Competition in the industry intensifies; consumption remains depressed.