The company's 1H2023 revenue increased by 2.31% over the same period last year, and its net profit increased by 140.72% over the same period last year. On August 22, the company announced that 1H2023 realized operating income of 3.05 billion yuan, an increase of 2.31% over the same period last year, and realized net profit of 212 million yuan, equivalent to 0.41 yuan of fully diluted EPS, an increase of 140.72% over the same period last year. The net profit of non-parent was deducted from 85 million yuan, an increase of 52.32%.
In a single quarter, 2Q2023 realized operating income of 1.408 billion yuan, an increase of 12.69% over the same period last year, and realized a net profit of 119 million yuan, equivalent to 0.23 yuan of fully diluted EPS, an increase of 287.78% over the same period last year. The net profit of non-return was-1 million yuan, compared with 12 million yuan in the same period last year.
The company's 1H2023 comprehensive gross profit margin increased by 0.03%, and the expense rate decreased by 0.82% during the period. 1H2023's comprehensive gross profit margin was 38.78%, up 0.03% from the same period last year. In a single quarter, 2Q2023's comprehensive gross profit margin was 37.83%, down 3.62 percentage points from the same period last year.
The expense rate of 1H2023 during the period was 31.33%, down 0.82% from the same period last year, of which the sales / management / finance / R & D expense rate was 22.91%, 3.37%, 4.84%, 0.21%, respectively, and the year-on-year change was-0.50%, 0.54%, 0.57%, 0.21%, respectively. The expense rate of 2Q2023 during the period was 33.75%, down 2.27% from the same period last year, of which the sales / management / finance / R & D expense rate was 24.33% / 3.82% and 5.37% / 0.23%, respectively, and the year-on-year change was-1.79 / + 0.92 /-1.64 max 0.23% respectively.
In the first half of 2023, the company opened 2 new stores and closed 2 stores. 3Q2023 company plans to open 2 new stores. By the end of June 2023, the company has a total of 116 stores (23 in Weifang Linqu Huaxing).
According to the announcement issued by the company on June 29, 2023 on the completion of the sale of assets related to subsidiaries, the company's subsidiary Texas Mall signed an agreement on the transfer of real estate and related equipment assets of Texas Ginza Building on June 13, 2023, with a transfer price of 401.47 million yuan. The income from the disposal of non-current assets of 1H2023 Company is 128 million yuan. In terms of main business, the company continues to promote the transformation of digital intelligence, loss-making store management, innovative marketing activities and other work to further improve the efficiency of the company's operation and management.
Raise profit forecast and maintain "overweight" rating
The company's profit performance exceeded expectations, mainly because Texas Mall's transfer of assets had a greater impact on profits. We raised the company's 2023 EPS forecast of 260% to 0.35 yuan, and maintained the company's 2024 / 2025 forecast of 0.12 pounds 0.14 yuan. The company continues to improve the efficiency of operation and management, promote the transformation of digital intelligence, raise the level of online, 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.