The company's 1H2023 revenue increased by 1.16% over the same period last year, achieving a net profit of 12 million yuan. On August 29, the company released its semi-annual report of 2023: 1H2023 realized operating income of 6.312 billion yuan, an increase of 1.16% over the same period last year, and realized a net profit of 12 million yuan (- 40 million yuan in the same period last year), equivalent to 0.02 yuan in fully diluted EPS, and 6 million yuan in non-return net profit, compared with-54 million yuan in the same period last year.
In a single quarter, 2Q2023 realized operating income of 2.8 billion yuan, an increase of 0.21% over the same period last year, realized net profit of 100000 yuan (- 42 million yuan in the same period last year), converted into fully diluted EPS of 0.0001 yuan, and realized deduction of non-return net profit of-4 million yuan, compared with-48 million yuan in the same period last year.
The company's 1H2023 comprehensive gross profit margin increased by 0.12%, and the expense rate decreased by 0.72% during the period. 1H2023's comprehensive gross profit margin was 24.89%, up 0.12% from the same period last year. In a single quarter, 2Q2023's comprehensive gross profit margin was 25.17%, up 0.27% from a year earlier.
The expense rate of 1H2023 during the period was 24.01%, down 0.72% from the same period last year, of which the sales / management / finance / R & D expense rates were 18.94%, 4.05%, 0.83%, 0.19%, respectively, and the year-on-year changes were-0.66%, 0.21%, 0.19%, 0.08%, respectively. The expense rate of 2Q2023 company during the period was 24.52%, down 1.27% from the same period last year. Among them, the sales / management / finance / R & D expense rate was 19.34%, 3.99%, 0.99%, 0.19%, respectively, and the year-on-year change was-1.56 / + 0.40 /-0.01, respectively. 0.11%.
Actively try new business type to increase the efforts to attract investment and reduce the vacant area
1H2023 opened 101 new stores, with a total of 1718 by the end of June 2023, a net increase of 35 over the end of 2022. The company actively tried new business type, in the first half of 2023: 1) 1) opened a new "small hundred Food Store" discount store; 2) opened 20 new "Zhongbai Qianshuang" light food restaurants to create a "Zhongbai Qianshuang" low-fat healthy food brand; 3) initially established Zhongbai supermarket joining system and expanded 8 franchise stores. 4) explore the service model of community canteen and create the first market-oriented "happy canteen". In terms of reducing costs and efficiency, in the first half of the year, the company increased the intensity of "one project, one strategy" to attract investment and rent, and the vacant area was reduced by about 25000 square meters.
Downgrade earnings forecast and maintain "buy" rating
The company's profit performance was lower than we had expected, mainly because the improvement in the company's profitability was less than we expected, and considering that there was still some uncertainty about the development effect of the company new business type, we lowered our forecast for the company's 2023, 2024 and 2025 EPS, 63% / 56%, 52% to 0.03, 0.04, 0.05 yuan. The company has a certain synergistic advantage among multi-formats, has a relatively dense network layout in Wuhan and other areas, has a strong regional competitive position, and maintains a "buy" rating.
Risk hint: shareholder reduction risk, store upgrade and transformation effect did not meet expectations, new business type development is not as expected.