The company's 1Q2023 revenue decreased 43.22% year on year, and Guimo's net profit decreased 34.54% year on April 28. On April 28, the company announced the 2022 annual report and the first quarter report of 2023:2022 achieved operating revenue of 1,789 million yuan, a decrease of 30.29% over the previous year, and realized Guimo's net profit of 33 million yuan, converted to fully diluted EPS of 0.02 yuan, a year-on-year decrease of 74.71%, less than 74.71%, after deducting net profit of Fumo -46 million yuan, the same period last year was 113 million yuan.
1Q2023 achieved operating income of 367 million yuan, a decrease of 43.22% over the previous year, and achieved net profit of 39 million yuan, which was converted to fully diluted EPS of 0.03 yuan, a decrease of 34.54% over the previous year, and achieved net profit of 35 million yuan after deducting non-return to the mother, a decrease of 39.56% from the previous year. The decline in 1Q2023 revenue is mainly due to the company's transfer of 24.75% of Ningbo Oupai Yishuhui International Trade Co., Ltd.'s shares in July 2022, which are no longer included in the scope of consolidated statements.
The company's consolidated gross margin for 1Q2023 increased 17.08 percentage points, and the cost rate for the period increased by 32.33 percentage points. In 2022, the company's comprehensive gross margin was 50.57%, up 3.56 percentage points from the previous year. The consolidated gross margin of 1Q2023 was 62.63%, an increase of 17.08 percentage points over the previous year.
The cost rate for the company period in 2022 was 69.62%, up 16.83 percentage points from the previous year. Among them, the sales/management/finance/R&D expenses ratio was 19.32%/31.19%/18.98%/0.13%, respectively, with a year-on-year change of +0.96/ +9.60/+6.42/-0.16 percentage points, respectively. The 1Q2023 company's expense ratio for the period was 81.14%, up 32.33 percentage points from the previous year. Among them, the sales/management/finance/R&D expenses ratio was 18.52%/37.76%/24.86%/0.00%, respectively, and the year-on-year changes of +5.21/ +16.84/+10.42/-0.14 percentage points respectively.
The convenience store business is progressing smoothly, and the department store Ole membership system has been opened
By the end of 2022, the company had opened 69 stores (including 55 convenience stores) in Hunan Province and Tianjin, including: 60 in downtown Changsha, Hunan (including 51 convenience stores); 8 in other cities in Hunan Province (including 4 convenience stores); and 1 in Tianjin. In 2022, Youa Convenience successfully moved out of downtown Changsha and created a template for local stores in Zhuzhou. The proportion of 7-Eleven franchisees has already exceeded 50%. On the online side, the company's CRM membership system was gradually upgraded, and membership systems for two different business formats, department stores and Ole, were officially launched.
The profit forecast was lowered to the “increase in holdings” rating
The company's performance in the first quarter of 2023 is under relative pressure. The main thing is that the recovery process of offline consumption in Hunan fell short of expectations. Considering that there is still some uncertainty about the overall pace of consumer demand recovery, we lowered the company's 2023/2024 EPS forecast by 29%/1% to 0.05/0.07 yuan, adding 0.10 yuan to the company's 2025 EPS forecast. The company's main department stores were impacted by competition from the Changsha IFC and Wangfujing in Changsha. The level of competition in the Hunan retail market intensified and was downgraded to an “increase in holdings” rating.
Risk warning: Competition in the Hunan retail market has intensified, and the convenience store promotion process has fallen short of expectations.