Event
The company released its three-quarter report in 2022, with revenue of 2.337 billion yuan (- 61.50%), net profit of 172 million yuan (- 57.17%), net profit of 11 million yuan (- 90.95%), revenue of 788 million yuan (- 56.71%), net profit of 13 million yuan (- 94.85%) and net profit of-29 million yuan (- 595.99%) in the first three quarters of 2022.
The consumer sector showed operational resilience, while the medical sector became the main contributor to revenue. The decline in 2022Q3 revenue was mainly due to the completion of the auto business sold in 2021.9, which was caused by a large base year-on-year, and the decline in net profit was mainly due to the substantial increase in investment income in the current period due to the sale of automobile business in 2021.9. Sub-business point of view, (1) consumer business: 2022Q3 department store retail business revenue of 151 million yuan (+ 11.36%), catering and food business revenue of 29 million yuan (- 5.60%). 2022Q3 department store retail business and food and beverage business are still facing the impact of the epidemic, benefiting from the company's brand influence in Wuxi, as well as the resource integration and coordination of various formats through multi-scene digital marketing, the consumer business sector has shown strong resilience, and business conditions have gradually recovered and improved. (2) Medical business: 2021.5 company cut into the medical track, 2022Q3 medical service business achieved revenue of 590 million yuan (+ 13.09%), accounting for 74.9% of the total revenue, becoming the main body of revenue contribution. The revenue of 2022Q1-Q3 medical service business is 1.648 billion yuan (+ 215.68%).
Improve the strategic layout of pediatrics direction and play a synergistic role
2022.9 Yahn Health cooperated with Jinhua Lianji Hospital to establish a "Child Development behavior intervention Center" to continuously improve the paediatric development strategy of "healthy companionship in the whole growth cycle of children". As of 2022Q3, the company has built sub-specialties in pediatrics, such as children's endocrinology, children's mental health, children's health care and rehabilitation, and has more than 50 children's chain institutions, covering 22 large and medium-sized cities across the country, including Beijing, Shanghai, East China, South China, Southwest and other regions. In the future, it is expected to continue to introduce children's oral cavity, children's eyesight, children's allergy and other related business, play a synergistic role, empower the development of the company.
Investment suggestion
In the short term, with the improvement of the epidemic, the consumer sector is expected to release performance flexibility; in the long run, the light luxury industry has a broad market space, the company continues to adjust and upgrade to improve the flat efficiency, and the retail department store business is expected to achieve steady growth. The fresh distribution and convenience store industry ushered in new development opportunities under the catalysis of the epidemic. The company opened fresh and enhanced stores and won 7-Eleven Hubei management right to explore and join the chain expansion model, which is expected to further strengthen the main retail business; the company acquired Jiangao Medical, Shuyang Central Hospital, Ya en Health, Zhibei Medical, Jinhua Lianji, cut into the field of health care, pediatrics and orthopaedics linkage empowerment, is expected to become a new performance growth point. We estimate that the company's EPS in 2022-2024 will be 0.25,0.29,0.32 yuan per share respectively, and the corresponding share price PE will be 18,16,14 times respectively, maintaining a "buy" rating.
Risk hint
The epidemic situation in some areas is repeated; the expansion of 7-Eleven stores is not as expected; and the cultivation of the medical sector is not as expected.
