The company's 1H22 revenue / net profit reached RMB 96,000,000, compared with the same period last year. The profit of the three major businesses of clothing / real estate / investment was RMB 4.5x1.03 billion respectively, and the year-on-year growth of the company's 1H22 revenue / net profit was mainly due to the concentrated delivery contribution of real estate projects under the low base. Looking forward to the second half of the year, 1) the main brands of the clothing business are expected to maintain steady growth (1H22 + 0.5%), and the adjustment of other brands has been basically completed and is expected to gradually resume growth; 2) the real estate business may be under pressure in the second half of the year under the background of a high 2H21 base, and it is expected to grow steadily for the whole year; generally speaking, we are still optimistic about the company's long-term development potential and maintain the "buy" rating.
The performance increased significantly due to the centralized delivery of real estate projects. 1) income and profit: the 1H22 income is 9.55 billion yuan / + 148%, the return net profit is 3.13 billion yuan / + 90.9%, and the non-return net profit is 2.99 billion yuan / + 135%. The high performance increase is mainly due to the centralized delivery of 1H22 projects in the real estate business (last year, it was delivered in 2H21). The company's 2Q22 income reached 2.12 billion yuan / + 8.8%, and the net profit returned to the mother was 1.01 billion yuan /-3.7%. 2) costs and expenses:
The company's 1H22 gross profit margin is 56.42%/-0.1pcts, and the sales / management / R & D expense rate is 13.7%, 5.6%, 0.6%, 0.6%, compared with the same period last year. The decline in sales expense rate is mainly due to the increase in the proportion of real estate business. The investment income of 1H22 reached 1.62 billion yuan /-2.5%. 3) Cash: the net operating cash flow of 1H22 reaches-2.32 billion yuan /-273%. The decrease in cash flow is mainly due to the reduction of advance sales in real estate business. As of 1H22, paper cash is 11.14 billion yuan and transactional financial assets are 640 million yuan.
Service business: the brand matrix is gradually enriched, and the channel structure is continuously adjusted. The company's 1H22 brand clothing business achieved an income of 2.79 billion yuan /-8.77%, and a net profit of 453.3 billion yuan /-26.4%. From a quarterly point of view, Q1/Q2 clothing business revenue reached 1.47 billion yuan respectively, down 0.82% and 16.3% compared with the same period last year. The gross profit margin of 1H22 clothing business reaches 74.3%/+0.8pcts. From a brand point of view, the revenue and profitability of the main brand are relatively sound. YOUNGOR achieves an income of 2.53 billion yuan / + 0.45% and a gross profit margin of 75.3% Universe 1.1 pcts. The remaining sub-brands fluctuate in the short term due to business and channel adjustments. MAYOR realized income of 140 million yuan /-47.1%, gross profit margin 75.9%/+1.2pcts; Hart Marx realized income of 0.6 billion yuan /-70.4%, gross profit margin of 51.6% Charley 17.6 pcts HANP realized income of 0.6 billion yuan /-19.6%, gross profit margin 49.0%/-6.7pcts.
According to different channels, the revenue of the company's 1H22 self-operated network is 650 million yuan /-17.7%, the gross profit is 75.3% /-10.9%, and the gross profit is 80.8% / 10.9%. The gross profit of the mall is 930 million yuan /-11.0%, and the gross profit is 79.9%/+1.7pcts. The revenue of the outlet mall is 160 million yuan /-8.3%, the gross profit is 72.3%, the gross profit is 1.0pct, the revenue of the franchise is 80 million yuan / + 4.9%, the gross profit is 73.5%, the income of the pcts; group purchase business is 260 million yuan /-2.8%, the gross profit is 54.0%, the gross profit is 300 million yuan / + 18.5%, and the gross profit is 69.1%/+2.7pcts. The distribution revenue is 0.7 billion yuan /-0.3%, and the gross profit margin is 60.8%. Pcts; 11.4 pcts; continues to cultivate the main brand YOUNGOR and adjusts the positioning and development path of sub-brands such as MAYOR, Hart Marx and HANP. At present, the preparatory work for independent operation has been basically completed, and the new products will be listed in the second half of the year. The channel end company continues to promote the big store strategy, and the average area of a new store is more than twice that of a closed store. At the same time, in April, it increased 2.5 billion yuan to Kuafu Technology Co., Ltd., making joint efforts online and offline to prepare the national strategic layout of the Fashion experience Museum and explore a new retail operation mode. As of 1H22, Youngor has 2094 outlets and a business area of 462800 square meters /-6.7%.
Real estate business: concentrated delivery of real estate projects in the first half of the year, maintaining healthy development as a whole. The company's 1H22 real estate business achieved a total of 6.28 billion yuan / + 1736%, with a net profit of 1.63 billion yuan / + 604%, mainly because the company's 2021 real estate projects were delivered in the second half of the year, while 2022 projects were delivered in the first half of the year. 1H22 concentrated on the delivery of Ningbo Jiangshang Garden Phase II, New Lakeview Garden, Songjiang House and other projects.
The company 1H22 has three new projects with a new construction area of 305800 square meters, one completed project (Ningbo New Lake Landscape Garden), with a completed area of 71700 square meters, and 15 projects under construction at the end of the period, covering an area of 1.6591 million square meters. At the end of the period, there are 4 land reserves (1H22 won the Minghu plot and Haishu Alps plot in the eastern part of Ningbo), with a land area of 232800 square meters and a planned construction area of 480800 square meters.
The company's 1H22 achieved a pre-sale of 2.64 billion yuan (order caliber) /-50.3%, mainly due to repeated local epidemics and cyclical development factors.
Investment business: steady performance growth, active layout of the consumer sector. The company's 1H22 investment business realized a net profit of 1.01 billion yuan / + 33.0%. As of 1H22, the final balance of the company's long-term equity investment reached 17.95 billion yuan / + 5.9%. The net outbound investment of 1H22 Company is 393 million yuan /-75.4%. It mainly buys 38.65 million shares of CITIC Limited (259 million yuan), the company invests 50 million yuan in Ningbo Yating Real Estate Co., Ltd., 12 million yuan in Shanghai Yandi Network Information Technology Co., Ltd., 20 million yuan in Italian Trading Co., Ltd., and 40 million yuan in HH-ALI PTE LTD. In addition, the company also invests in overseas brand Slashop and high-end furniture retailer Cabana to further improve the layout of the consumer sector. In addition, the company's shareholding company Qinghe Lawn has completed the IPO declaration on the Shanghai Stock Exchange, and the Shanghai American Group has been heard by the Stock Exchange, which is expected to further increase its investment income in the future.
Risk factors: local epidemic repeatedly affects offline store sales and real estate business sales and construction; brand aging and brand adjustment and upgrading are not as expected; investment return fluctuations caused by fluctuations in the operation of invested projects.
Profit forecast, valuation and rating: taking into account the short-term pressure of the company's clothing business, the smooth delivery progress of the real estate business and the steady growth of the investment business, the company maintained its EPS forecast of 1.04 pounds 1.16 pounds in 2022-2024. According to the segment valuation method, the clothing business refers to the industry comparable valuation in 2022 (the average PE of Jiumuwang and Seven Wolves is 15.5 times PE, based on the prediction of CITIC Research Department), and gives the company's clothing business 15 times PE, corresponding to the target market value of 13.4 billion yuan. Real estate business gives 0.9x PB (Vanke A, Poly Development, Metro Holdings, Jindi Group, Binjiang Group, Rongan Real Estate, Greentown China 2022 Wind average PB), corresponding to the target market value of 6.8 billion yuan The investment business reference sub-project valuation method and the PB valuation method (1 times PB) maintain the target market value of 17.1-26.8 billion yuan, and give the company a diversification discount of 10%, with a comprehensive target market value of 33.8billion-42.3 billion yuan in 2022, corresponding to the target price of 7.3-9.2 yuan. Maintain a "buy" rating.
