Performance review
The first quarter results of 2022 are basically in line with our expectations.
The company announced its results for the first quarter of 2022: revenue was 3.45 billion yuan, down 1.2% from the same period last year, and its net profit was 2.199 million yuan, down 9.5% from the same period last year. The performance is basically in line with our expectations, deducting a non-net loss of 6.33 million yuan and a loss of 22.92 million yuan in the same period last year. Non-recurrent items are mainly government subsidies.
Trend of development
1. 1Q22 revenue fell slightly compared with the same period last year. The company's 1Q22 achieved revenue of 3.45 billion yuan, down 1.2% from the same period last year. From a sub-format point of view: 1) supermarket business: on the one hand, we expect that the epidemic repeatedly superimposes industry competition to affect offline passenger flow, on the other hand, the epidemic in many places repeatedly stimulates the increase in short-term hoarding demand, and the company carries out dynamic management of goods. continuous introduction of new products; 2) Shopping malls: we expect the epidemic to repeatedly affect offline passenger flow to a certain extent, and the business revenue of shopping malls may decline compared with the same period last year.
2. The net profit margin is basically the same. 1Q22's gross margin edged down 0.4ppt to 24.7% year-on-year. On the expense side, the 1Q22 sales expense rate decreased to 18.5% compared with the same period last year, the management expense rate increased by 0.5ppt to 4.3%, and the financial expense rate increased to 1.0% compared with the same period last year. The overall cost control capability has been improved. Under the combined influence, 1Q22's parent net interest rate was unchanged at 0.1%, while non-net profit margin increased by 0.5ppt to-0.2% compared with the same period last year.
3. Pay attention to the progress of the transformation of the company's business format. 1) in terms of digitization, the company invested 100 million yuan to set up Digital Zhiyun Technology Company in 2021 to promote the construction of data centers and online platforms. At present, it has been launched to gradually try digital empowerment, such as "Zhongbai Neighbourhood Shopping"; 2) accelerate the layout of convenience stores. In 2021, Zhongbai Rosen has entered 14 cities, with a total of 633 stores. 3) in terms of store management, the company promoted the reform of the mechanism, and at the end of 2021, 321 stores realized "partnership", with more than 12000 employees, and at the same time promoted the transformation of traditional supermarket stores and the upgrading of management quality.
Profit forecast and valuation
Based on the repeated epidemic and the impact of increased competition in the industry, we lowered the profit forecast of 2022 Universe by 15% of 2023 to RMB 219.3 million. Considering that the absolute amount of the company's profit is low and fluctuating, we switch to PS valuation. The current share price corresponds to 2022Universe 0.26 in 2023. Keep the neutral rating unchanged with the target price of 4.4 yuan, corresponding to 2022, 2023, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24, 0.24 and 0.24, which is 6% lower than the current stock price.
Risk.
Competition in the industry intensifies; consumption remains depressed.