The company's 2022 revenue decreased 1.08% year-on-year, achieving net profit of -320 million yuan. On March 30, the company announced its 2022 annual report: 2022 achieved operating income of 12.197 billion yuan, a decrease of 1.08% over the previous year, and achieved net profit of -320 million yuan, converted into a fully diluted EPS of -0.47 yuan, achieving net profit of -329 million yuan after deducting non-homogenous net profit of -329 million yuan.
Looking at a single-quarter split, 4Q2022 achieved operating income of 2,987 million yuan, a decrease of 0.21% over the previous year, and achieved net profit of -204 million yuan, converted into a fully diluted EPS of -0.30 yuan, and achieved net profit of -200 million yuan after deducting non-return to the mother.
The company's consolidated gross margin in 2022 fell 1.14 percentage points, and the cost rate for the period increased by 0.97 percentage points. The company's comprehensive gross margin in 2022 was 23.94%, down 1.14 percentage points from the previous year. Looking at a single-quarter split, 4Q2022's consolidated gross margin was 21.58%, down 3.80 percentage points from the previous year.
The cost rate for the company period in 2022 was 25.75%, up 0.97 percentage points from the previous year. Among them, the sales/management/finance/R&D expenses ratio was 20.24%/4.15%/1.10%/0.25%, respectively, and the year-on-year changes of +0.64/+0.21/0.00/+0.12 percentage points respectively. The 4Q2022 company's expense ratio for the period was 27.06%, up 1.52 percentage points from the previous year. Among them, the sales/management/finance/R&D expenses ratio was 21.17%/4.45%/1.24%/0.20%, respectively, and the year-on-year changes of +2.51/ -0.51/ -0.45/-0.03 percentage points respectively.
Offline stores expanded in an orderly manner, and actively carried out business format innovation and product updates. In 2022, the company added 127 new innovative stores, including 2 new “select stores” in the warehouse supermarket business, 68 new “neighborhood” stores in the community supermarket business, 45 new “convenience store+” convenience stores, 2 community fresh stores, and 2 complex convenience stores that operate “day, coffee and night wine” at the end of 2022. As of the end of 2022, there were 1,683 company stores, including 197 large stores and comprehensive supermarkets, and 687 community supermarkets, and 687 community supermarkets 6 stores, 774 convenience stores, department stores There are 9 shopping malls and 17 electronics specialty stores. In terms of product updates, the product update rate for the company's warehousing supermarket business reached 39.45% in 2022; the product update rate for the community supermarket business reached 27.36%; the update rate for fresh food products in convenience stores reached 120.34%; and the room temperature product update rate reached 54.5%.
Raise profit forecasts and maintain the “increase in holdings” rating
The company was hit hard by the impact of the epidemic in 2022, but the company is actively changing and iterating on business formats and product updates, which is expected to turn a loss into a profit as soon as possible. We raised the company's 2023/2024 EPS forecast to 0.01/0.02 yuan (the original forecast value was /-0.08/0.01 yuan), adding 0.03 yuan to the company's 2025 EPS forecast. The number of company stores and scale of operation rank among enterprises in the Hubei market. The advantages of different business formats complement each other and develop collaboratively, the logistics system is perfect, and the “increase in holdings” rating is maintained.
Risk warning: The results of the cooperation with Yonghui did not meet expectations, and the results of store upgrades did not meet expectations.