The company's 1H2022 revenue decreased 14.31% year on year, and Guimu's net profit decreased 61.56% year on August 30. On August 30, the company announced its 2022 semi-annual report: 1H2022 achieved operating revenue of 1,109 million yuan, a decrease of 14.31% over the previous year, and achieved net profit of 75 million yuan in Guimo, converted to fully diluted EPS of 0.05 yuan, a decrease of 61.56% over the previous year, and achieved net profit of 67 million yuan after deduction of Fangmo's net profit of 65.41% year on year.
Looking at a single-quarter split, 2Q2022 achieved operating income of 463 million yuan, a year-on-year decrease of 25.83%, and achieved net profit of 15 million yuan, converted to fully diluted EPS of 0.01 yuan, a decrease of 82.03% over the previous year, and achieved net profit of 0.08 million yuan after deducting non-return to the mother, a decrease of 89.92% over the previous year.
The company's consolidated gross margin for 1H2022 decreased by 3.46 percentage points, and the cost rate for the period increased by 8.48 percentage points. 1H2022's consolidated gross margin was 46.27%, down 3.46 percentage points from the previous year. Looking at a single-quarter split, 2Q2022's consolidated gross margin was 47.28%, up 0.34 percentage points from the previous year.
The 1H2022 company's expense ratio for the period was 56.13%, up 8.48 percentage points from the previous year. Among them, the sales/management/finance/R&D expenses ratio was 15.18%/24.35%/16.43%/0.17%, respectively, and the year-on-year changes of -1.22/ +5.05/+4.88/ -0.24 percentage points respectively. The 2Q2022 company's expense ratio for the period was 66.35%, up 16.98 percentage points from the previous year. Among them, the sales/management/finance/R&D expenses ratio was 17.79%/29.15%/19.22%/0.20%, respectively, which changed +0.59/ +9.03/ +7.62/-0.26 percentage points from the previous year.
7-11 Convenience stores left Changsha and actively promoted the development of online platforms. By the end of June 2022, the company had opened 60 stores (including 46 convenience stores) in Hunan Province and Tianjin, including 53 in downtown Changsha, Hunan (including 44 convenience stores); 6 in other cities in Hunan Province (including 2 convenience stores); and 1 in Tianjin. With the exception of 22 convenience stores that are franchise stores, all stores are directly managed stores. The 7-11 convenience store first opened franchise stores in markets outside of downtown Changsha in the first half of 2022. On the online side, in the first half of 2022, the transaction volume of the company's self-built online platforms such as “Youa Overseas Purchase” and “Youa Wei Store” was 46.6077 million yuan, and the transaction volume of Oupai Luxury, the holding subsidiary Oupai Luxury, and online third-party platforms such as Tmall, JD, Temple Library, and Dock, was 390.1441 million yuan.
Maintain profit forecasts and maintain “buy” ratings
The company's performance is in line with expectations, and we maintain our 2022/2023/2024 EPS forecast of 0.06/0.07/0.07 yuan. The company's convenience store business is progressing smoothly, and the continuous promotion of the online and offline integration process is conducive to enhancing the company's competitive strength and maintaining the “buy” rating.
Risk warning: Competition in the Hunan retail market has intensified, the cultivation period for new stores has been longer than expected, and the convenience store promotion process has fallen short of expectations.