The company's 1H2023 revenue decreased by 13.76% year on year and achieved net profit of 374 million yuan. On August 30, the company announced the 2023 semi-annual report: 1H2023 achieved operating income of 42,027 billion yuan, a year-on-year decrease of 13.76%, and realized net profit of 374 million yuan (-112 million yuan for the same period last year), equivalent to 0.04 yuan for fully diluted EPS, achieving net profit of 99 million yuan, an increase of 5.56% over the previous year.
Looking at the single-quarter split, 2Q2023 achieved operating income of 18.225 billion yuan, a year-on-year decrease of 15.18%, realized net profit of 330 million yuan (same period of the previous year was -614 million yuan), converted to a fully diluted EPS of -0.04 yuan, realized net profit of non-attributable net profit of -519 million yuan, and -534 million yuan for the same period last year.
The company's comprehensive gross margin for 1H2023 increased by 1.64 percentage points, and the cost ratio for the period increased by 1.66 percentage points. 1H2023 The company's comprehensive gross margin was 21.99%, up 1.64 percentage points from the previous year. Looking at the quarterly split, the comprehensive gross margin of 2Q2023 was 20.83%, up 1.66 percentage points from the previous year.
The cost rate for 1H2023 during the period was 21.62%, up 1.66 percentage points from the previous year. Among them, the sales/management/finance/R&D expense ratio was 17.29%/2.25%/1.59%/0.49%, respectively, and the year-on-year change was +1.23/+0.41/+0.02/-0.01 percentage points, respectively. The cost rate for 2Q2023 during the period was 24.23%, up 2.19 percentage points from the previous year. Among them, the sales/management/finance/R&D expense ratio was 19.88%/2.12%/1.74%/0.50%, respectively, and the year-on-year change was +2.13/ +0.05/ +0.04/-0.03 percentage points, respectively.
Online business is developing rapidly, and the degree of online development has further increased
1H2023 added 4 new stores (including Top 100 Yonghui, excluding Yonghui Life and Super Species) and closed 29 supermarket stores. As of the end of June 2023, the company had a total of 1008 stores and 105 stores that had not yet been contracted. On the online side, 1H2023's online revenue was 7.92 billion yuan, an increase of 4.4% over the previous year, accounting for 18.7% of the main omnichannel revenue. By the end of June 2023, “Yonghui Life”'s self-operated home delivery business had covered 946 stores, and the third-party platform home delivery business had covered 922 stores. As of August 2023, the company had a total of 940 e-commerce warehouses, including 135 basic warehouses, 131 high-standard half-warehouses, 652 integrated stores, and 22 satellite warehouses. In terms of private brands, 1H2023's own brand sales reached 1.95 billion yuan, an increase of 15.2% over the previous year.
Lower profit forecasts and maintain the “increase in holdings” rating
The company's 2Q2023 profit performance fell short of our previous expectations. On the one hand, due to the company's revenue pressure, and on the other hand, due to the company's relatively strong investment in expenses, we lowered our forecast for the company's 2023/2024/2025 EPS to -0.06/0.02/0.03 yuan (the original forecast value was 0.01/0.03/0.06 yuan). The company's online business is developing rapidly, and the degree of online development continues to increase, maintaining a “increase in holdings” rating.
Risk warning: The revenue and profit of the company's warehousing member stores fell short of expectations, and the community group buying business was impacted.