The company released the semi-annual report of 2022: 1) 2022H1: the company realized operating income of 535 million yuan /-10.49%, net profit of 911.50 million yuan /-77.11%, and non-net profit of 9.0842 million yuan /-70.53%. 2) single Q2: the company achieves operating income of 251 million yuan /-23.69%, net profit of 557.90 million yuan /-73.45%, and non-return net profit of 568.84 yuan /-71.45%. It is mainly due to the low consumer confidence under the epidemic and the interruption of logistics and supply chain caused by closure.

The gross profit margin is under pressure, and the expense rate has increased during the period. 22H1's overall gross margin fell 3.35pcts to 30.14%. On the expense side, the expense rate during the 22H1 period is 28.95%/+1.42pcts, in which the sales / management / finance / R & D expense rate is 19.24%, 7.25%, 0.58%, 3.04%, respectively, compared with the same period last year + 1.08pcts/+1.12pcts/-0.78pct/+0.26pct. Under the comprehensive action, the net interest rate is 1.70%/-4.96pcts.

Retail revenue fell for the first time, and operational service resilience was highlighted. From a sub-business point of view, due to the repeated epidemic, low consumer confidence, the peak of industry traffic dividends, and some cooperative brands changing from retail business cooperation to operation service cooperation, 22H1 retail business revenue decreased for the first time, achieving revenue of 244 million yuan /-17.33%, gross profit margin 32.54%/-6.87pcts, operating service business resilience, revenue 73 million yuan / + 1.97% During the period of 60.28% Maxime 5.28pcts618, 39 cooperative products steadily ranked in the top three of the sub-categories, and 15 health care mother and child categories ranked firmly in the industry TOP. Brand planning income 44 million yuan / + 18.46%, gross profit 22.70%/-3.38pcts; channel distribution income 174 million yuan /-10.12%, gross profit 16.08%/+1.98pct.

Investment advice: buy-An investment rating. From 2022 to 2024, we expect the company to achieve 1.548 billion yuan in revenue of 12.00 yuan, 13.72% and 13.47% compared with the same period last year, and the estimated net profit is 0.16 million and 0.26 million, compared with the same period last year. 55.13% of the same period.

The 12-month target price is 21.18 yuan.

Risk tips: epidemic repeated risk, brand authorization management and expansion risk, cooperative e-commerce platform risk and so on.