The company's 1Q2022 revenue decreased by 9.17% compared with the same period last year, and the company's net profit decreased by 17.85% over the same period last year. On April 22, the company announced that 1Q2022 realized operating income of 210 million yuan, a decrease of 9.17% over the same period last year, and realized a net profit of 19 million yuan, equivalent to a fully diluted EPS of 0.05 yuan, a decrease of 17.85% over the same period last year. The net profit of non-homing was deducted from 19 million yuan, an increase of 12.43%.
The company's 1Q2022 comprehensive gross profit margin rose 2.02%, and the expense rate rose 0.16% during the period. 1Q2022's comprehensive gross profit margin was 52.98%, an increase of 2.02% over the same period last year.
The expense rate of 1Q2022 during the period was 37.69%, an increase of 0.16% over the same period last year, of which the sales / management / financial expense rate was 5.58%, 35.30% and 3.20%, respectively, and the year-on-year change was + 0.69% / + 2.41%. 2.93%.
Set up a wholly-owned subsidiary to promote business model innovation and business format innovation, the company held the 35th meeting of the seventh session of the board of directors on March 15, 2022, and examined and adopted the "Bill on the Establishment of a wholly-owned subsidiary". In order to speed up business expansion, expand business scale, and promote business model innovation and business format innovation, the company invested 5 million yuan to set up a wholly-owned subsidiary. As a light asset operation and new business development platform. Shenyang Zhongxing Business Management Consulting Co., Ltd., a wholly owned subsidiary, was registered and established on March 25, 2022.
On February 28, 2021, the company held the 21st meeting of the Seventh session of the Board of Directors and examined and passed the "Bill on cancellation of wholly-owned subsidiaries". In order to further integrate business resources, form a joint marketing force and improve operational efficiency, cancel Shenyang Zhongxing Culture and Media Co., Ltd., a wholly-owned subsidiary. On March 21, 2022, Shenyang Zhongxing Culture Media Co., Ltd. completed the deregistration.
The company's 1Q2022 revenue and profits declined, mainly due to the repeated impact of the epidemic in Northeast China, the company's main stores were closed, and the company issued an announcement on April 13, 2022 about the resumption of business in the company's department stores. The company's department store has resumed business since April 13, 2022. While fulfilling the social responsibility for epidemic prevention and control and strictly implementing various measures for epidemic prevention and control in business places, the company will actively carry out online and offline all-channel business promotion and promotion to protect consumers' daily shopping needs as far as possible.
Downgrade profit forecast and maintain "overweight" rating
The company's performance was lower than expected, mainly due to the impact of the epidemic in Northeast China. In view of the fact that the recovery process of the epidemic is not yet clear, we downgraded our forecast for the company's 2022, 2023, and 2024 EPS, 26%, 23%, to 0.27, 0.29, 0.31 yuan. The company has a certain competitive advantage in Shenyang, actively innovating its business model and maintaining its "overweight" rating.
Risk hint: the operation of the main store is not up to expectations, and the business improvement after the mixed reform is not up to expectations.