Event description
The company disclosed its annual report: in 2021, the company realized operating income of 12.331 billion yuan, down 6.08% from the same period last year, realized net profit attributable to-22.4827 million yuan, down 152.13% from the same period last year, and realized non-net profit from attribution to-104 million yuan, down 313.22% from the same period last year. Basic earnings per share is-0.03 yuan per share.
Event comment
The company's revenue growth improved month-on-month, quarterly gross profit margin increased compared with the same period last year, affected by the new leasing criteria, the expansion of R & D investment and other short-term pressure on the company's performance. In 2021, the company's operating income decreased by 6.08% compared with the same period last year, with 2021Q1-Q4 growth rates of-11.76%,-8.67%,-4.89% and 3.14%, respectively, increasing month-on-month, and becoming a regular employee for the first time in the fourth quarter. The company has maintained a steady pace of opening stores, with 242 new outlets in 2021, including 10 Zhongbai warehouses, 53 Zhongbai supermarkets and 179 Zhongbai Rosen. From the perspective of gross profit, the gross profit of the company in 2021 was 3.093 billion yuan, down 1.42% from the same period last year. Due to the continuous optimization of the company's commodity structure, Q4 gross profit was 760 million yuan, an increase of 90.6 million yuan over the same period last year. On the expense side, Q4 company's sales expenses increased by 66.55 million yuan, or mainly due to the increase in staff salaries and other expenses, management expenses increased by 6.91 million yuan, R & D expenses increased by 6.7 million yuan, and financial expenses increased by 52.99 million yuan over the same period last year. The total operating profit of the company Q4 (gross profit-sales expenses-management expenses-research and development expenses-financial expenses-tax) was 23.29 million yuan, down 37.72 million yuan from the same period last year. Overall, in 2021, the company's short-term performance was under pressure due to the implementation of the new leasing standards and the expansion of R & D investment. excluding non-recurrent profits and losses (including 90.65 million yuan in government subsidies), the annual deduction of non-net profit was-104 million yuan, down 153 million yuan from the same period last year. Q4 deducted non-net loss was 27.5 million yuan, down 124 million yuan from the same period last year.
On the basis of the deepening of the internal reform of digital transformation and commodity structure optimization, the company continues to distribute diversified business formats. In terms of internal reform, in 2021, the company accelerated the overall digital transformation of the company, invested 100 million yuan to set up a digital cloud technology company, and quickly promoted the construction of the main data center, intelligent supply chain and online self-owned platform projects. The company continued to promote the online process, home business for the whole year a total of 1065 stores, sales increased by 77.43%, online sales accounted for 9.75%, the development of customized group purchase business, the annual group purchase sales increased by 5.32% The company actively optimized the commodity structure to improve business quality. 5578 and 1861 new products were introduced into warehousing and community supermarkets, respectively, and the commodity renewal rate was 32.81% and 22.22% respectively. The effect of structural adjustment was remarkable, and the comprehensive gross profit margin increased by 1.58% and 0.94% respectively. At the same time, the company continues to layout diversified formats, convenience stores in Hubei and Hunan provinces have a cumulative layout of 14 cities, a total of more than 600 stores, community supermarkets explore the opening of "Z era" and other new store outlets 31.
Investment advice: continue to deepen reform, profit efficiency may be expected to usher in improvement. 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 the company's operating performance to be improved. The current market capitalization is only 0.26 times revenue PS in 2022, maintaining a "buy" rating.
Risk hint
1, the acceleration of new entrants to the regional market further intensifies the competition; 2, the company new business type layout management effect cash speed is slow.