Event
The company released three quarterly reports in 2022, with revenue of 67.924 billion yuan (+ 3.98%) in the first three quarters, net profit of 631 million yuan (- 15.62%), net profit of 588 million yuan (+ 14.57%), revenue of 21.893 billion yuan (- 16.12%), net profit of 223 million yuan (- 49.72%) and net profit of 204 million yuan (- 13.65%) in the first three quarters.
Gross profit margin, deduction non-return net interest rate increased, profitability enhanced 2022Q3 income growth decreased or due to the epidemic impact of the reduction of offline passenger flow and 2021Q3 high base effect. 2022Q3's gross profit margin is 3.76% (+ 0.65pct), or because the company makes efforts on online platforms such as Tmall, Pinduoduo, Douyin, etc., to open up public and private domain traffic, leading to an increase in the share of revenue from digital retail business with higher gross margins, thereby increasing the overall gross profit margin. The 2022Q3 sales expense rate is 2.0% (+ 0.8pct), or due to the company's strategic cooperation with Zero cars, the construction of a new energy vehicle sales network and the promotion of Glory, Apple Inc and other new products on the market; the 2022Q3 management expense rate is 0.3% (- 0.1pct), mainly due to the company's continuous improvement of management efficiency.
The net interest rate of 2022Q3 is 1.16% (- 0.66pct). The main reason is that 2021Q3 Company transfers the equity of Shenzhen No.1 Technology Co., Ltd. (accounting for 44.67% of 2021Q3's net profit) resulting in a high base effect. 2022Q3 deducts the non-return net interest rate of 0.93% (+ 0.03pct).
Build own brand + layout of new energy car track, build Xu Li's own brand for long-term development: the company relies on a huge sales network to build its own brand of fast consumer goods, such as new tea brand "Tea Xiaokai", intelligent care product "ROZU/ Honor", intelligent health products "
"UOIN/ grapefruit printing", high-end boutique wine new brand PORU "Tianbao Lu", among which "UOIN/ grapefruit printing" has covered more than 600 terminal stores, the product SKU will be expanded to 18, and "tea small opening" products have completed the coverage of 20000 sales outlets. New energy car race track:
2022.8.25 the company carries out strategic cooperation with Zero Automobile, deeply arranges the field of new energy vehicles, directly reaches consumers through an integrated online and offline sales and service network, and establishes an active online and offline user community. provide high-quality service to consumers' end-to-end life cycle, so as to build a multi-level three-dimensional new automobile retail service network.
Investment suggestion
After years of development, the company has grown into a leading enterprise in digital distribution and digital retail business, with multi-dimensional competitive advantages such as brand cooperation, product coverage and regional promotion in the industry. With the gradual emergence of the Matthew effect in the mobile phone field, the company's mobile phone sales business is expected to achieve steady growth, and the supplement of non-mobile phone business is expected to become a new growth point of performance. It is estimated that in 2022-2024, the EPS will be 0.75,1.08 and 1.50 yuan per share respectively, and the corresponding share price PE will be 13.2,9.2 and 6.6 times respectively, maintaining the "buy" rating.
Risk hint
As a result of the epidemic, offline retail sales fell short of expectations, e-cigarette policies became stricter, and the expansion of fast consumer goods and private brands fell short of expectations.