The company's revenue in 2022 decreased by 5.14% compared with the same period last year, realizing net profit of 15 million yuan. On March 28, the company announced its annual report of 2022: operating income of 5.379 billion yuan in 2022, a decrease of 5.14% over the same period last year, net profit of-15 million yuan, equivalent to fully diluted EPS of-0.03 yuan, and deduction of non-home net profit of-49 million yuan. The company conducted an impairment test on the goodwill formed by the merger at the end of 2022, and the impairment loss of goodwill was estimated to be 48.8995 million yuan according to the proportion of shareholding.
From the perspective of single-quarter split, 4Q2022 achieved operating income of 920 million yuan, a decrease of 25.86% over the same period last year, and realized net profit of-115 million yuan, equivalent to fully diluted EPS of-0.22 yuan, and realized deduction of non-return net profit of-114 million yuan.
The company's comprehensive gross profit margin fell by 0.06 percentage points in 2022, and the expense rate decreased by 0.25 percentage points in 2022. The company's comprehensive gross profit margin in 2022 was 40.44%, down 0.06 percentage points from the same period last year. In a single quarter, 4Q2022's comprehensive gross profit margin was 49.88%, up 3.90% from a year earlier.
In 2022, the expense rate during the company period was 36.43%, a decrease of 0.25% compared with the same period last year. Among them, the sales / management / finance / R & D expense rates were 26.28%, 3.89%, 6.06%, 0.19%, respectively, and the year-on-year changes were + 0.02, 0.59, and 0.19 percentage points respectively. The expense rate of 4Q2022 during the period was 55.07%, an increase of 9.62% over the same period last year. Among them, the sales / management / finance / R & D expense rate was 37.63%, 8.60%, 7.71% and 1.13%, respectively, and the year-on-year change was + 4.19 / + 2.21 / + 2.09 / 1.13% respectively.
Increase R & D investment to set up R & D centers and actively carry out various marketing activities by the end of 2022, the company has a total of 116 stores (23 in Weifang Linqu Huaxing), covering 11 prefectures and cities in Shandong Province and Hebei Province, with a construction area of 3.1075 million square meters. On January 8, 2023, the company opened a new large-scale comprehensive supermarket Dongying Yellow River Store. In 2022, the company was greatly affected by the epidemic. According to the category, the optional consumption was relatively under pressure, and the performance of the required goods was relatively stable. The company actively responds to the challenges, increases R & D investment, sets up R & D centers, and actively carries out promotion activities. In 2022, it has formulated 27-year supermarket theme marketing mainly from the three aspects of "commodity promotion, topic marketing and scene marketing". By the end of 2022, the number of company members was about 10.25 million, accounting for 71.43% of sales in 2022.
Downgrade profit forecast and maintain "overweight" rating
The company was greatly affected by the epidemic in 2022. As there is still some uncertainty about the recovery process of consumers' purchasing power and consumption intention, we downgrade the forecast for the company's 2023 / 2024 EPS of 71% to 0.06 yuan, and increase the forecast for the company's 2025 EPS to 0.07 yuan. The company's increased investment in R & D will help to improve the efficiency of the company's operation and management, improve the company's profitability, and maintain the "overweight" rating.
Risk hint: some stores can not renew their leases when their leases expire, and new business type and the new store are not expanding as fast as expected.