The company's 1H2023 revenue decreased by 4.54% compared with the same period last year, achieving a net profit of 328 million yuan. On August 30, the company announced its semi-annual report of 2023: 1H2023 realized operating income of 16.332 billion yuan, a decrease of 4.54% over the same period last year, and realized a net profit of 328 million yuan (- 116 million yuan in the same period last year), equivalent to 0.18 yuan in fully diluted EPS, and 273 million yuan in non-return net profit, compared with-129 million yuan in the same period last year. Turn losses into profits.
In a single quarter, 2Q2023 realized operating income of 6.845 billion yuan, an increase of 0.33% over the same period last year, realized a net profit of 116 million yuan (- 272 million yuan in the same period last year), converted into a fully diluted EPS of 0.07 yuan, and realized a non-return net profit of 81 million yuan, compared with-275 million yuan in the same period last year.
The company's 1H2023 comprehensive gross profit margin increased by 3.23%, and the expense rate decreased by 0.22% during the period. 1H2023's comprehensive gross profit margin was 26.56%, up 3.23% from the same period last year. In a single quarter, 2Q2023's comprehensive gross profit margin was 28.66%, up 5.56% from a year earlier.
The expense rate of 1H2023 during the period was 22.50%, a decrease of 0.22% compared with the same period last year, of which the sales / management / finance / R & D expense rate was 15.54%, 6.90%, 0.002%, 0.06%, and the year-on-year change was + 0.13 / + 0.10, 0.45, 0.01%, respectively. The expense rate of 2Q2023 during the period was 26.78%, down 2.10% from the same period last year, of which the sales / management / finance / R & D expense rate was 18.46%, 8.25%, 0.01%, 0.07%, respectively, and the year-on-year change was-0.28 /-1.28 /-0.54 shock 0.01%, respectively.
The transformation of key projects is progressing smoothly. In terms of the official opening of new stores in Qingdao, 1H2023 has opened 145 new stores and closed 135 stores. In terms of key store transformation, Bailian ZX fun Field, which opened on January 15, 2023, is the first commercial body in China to focus on two-dimensional culture. The first department store business center, focusing on brand adjustment and space efficiency, the introduction of art exhibitions, performing arts, creative bookstores and other formats. Bailian OUTLETS Plaza (Qingdao? Jimo) officially opened on April 28, 2023 and has more than 100 well-known brands at home and abroad. In the second half of the year, the company will speed up the transformation of key projects such as Bailian West suburb Shopping Center, first Yaohan partner, Oriental Mall (flagship store), Shanghai Qingpu Olai and so on.
Downgrade earnings forecast and maintain "buy" rating
The company's performance is basically in line with the performance forecast issued by the company on July 14, 2023 (expected to achieve a return to the parent net profit of RMB 3.0-360 million), but considering that there is still some uncertainty in the second half of the year and the future recovery of consumption, we downgrade the forecast for the company's 2023, 2024, and 2025 EPS, 7%, 13%, 17% to 0.39, 0.44, 0.49 yuan. The recovery of the company's Olai and Buy 100 formats is good, and the adjustment of the stores will help to further thicken the company's performance and maintain the "buy" rating.
Risk hint: the recovery process of consumption is lower than expected, and the operation of shopping malls after renovation is not up to expectations.