This report is read as follows:
Olai high growth, supermarkets drag on net profit, REITs helps asset revitalization and business expansion.
Main points of investment:
The performance of investment recommendations is in line with the forecast, maintaining the forecast company's 2023-2025 return net profit EPS of 0.39,0.44,0.53 yuan respectively, with reference to PE valuation and FCFE valuation, maintaining the target price of 18.14 yuan, maintaining the overweight rating.
Performance description: 2023H1 revenue of 163.32 billion yuan /-4.54%, net profit of 328 million yuan / year-on-year return to profit, deduction of non-return net profit of 273 million yuan / year-on-year return to profit, gross profit margin 26.56%/+3.23pct, return net profit rate 2.01%/+2.69pct. Among them, 2023Q2 revenue is 6.845 billion yuan / + 0.33%, net profit is 116 million yuan / year-on-year return to profit, deduction of non-return net profit 81 million yuan / year-on-year return to profit, gross profit margin 28.66%/+5.56pct, return net profit rate 1.70%/+5.68pct.
Large-scale comprehensive supermarket business is a drag, OUTLETS high growth, department stores positive transformation. 2023H1 Lianhua supermarket's net loss of 116 million yuan (the company holds a 20.03% stake in Lianhua supermarket) dragged down the company's net profit; Olai benefited from parity consumption trend and offline consumption recovery had the highest growth rate, 2023H1 revenue + 56.36% year-on-year, gross profit margin + 10.54pct Traditional department store retail formats are under pressure under the process of digitization. Aiming at key business areas, the company builds a young state through multi-marketing to attract young people and high-end consumer traffic and improve performance. 2023H1 department store growth rate is 42.22%, gross profit margin + 4.85pct.
REITs invigorates stock assets. The company plans to apply for and issue a public offering REITs with another shopping mall project in Shanghai as an infrastructure project. Bailian shares became the first batch of public REITs pilot companies, which is good for the company's strategic transformation and extension expansion.
Risk hint: consumer demand is weak, store expansion is not as expected, and competition in the industry intensifies.