The company released its semi-annual report for 2023:
2023H1 achieved operating income of 1.439 billion yuan /-7.59%, net profit of-24 million yuan /-492.02%, and non-net profit of-24 million yuan (- 14 million yuan in the same period last year). The decline in revenue was mainly due to the decline in some brands' revenue compared with the same period last year. After dismantling Q2 alone, the operating income was 825 million yuan /-2.07%, the net profit was 345600 yuan (- 6.5876 million yuan in the same period last year), and the non-net profit was 1.1506 million yuan (- 25.4076 million yuan in the same period last year).
The gross profit margin has increased and the cost level has increased slightly.
2023H1 gross profit margin increased by 1.80pcts to 31.98%. On the expense side, the sales / management / finance / R & D expense rates are 23.29% 0.57% 0.56% 0.38% respectively, year-on-year + 0.77pct/+0.47pct/+0.09pct/-0.02pct. The net interest rate is 0.38%/-0.02pct.
E-commerce retail still contributes the main revenue, while emerging channels maintain rapid growth.
(1) from the perspective of sub-business model, e-commerce retail business still contributes the main revenue. 2023H1 e-commerce retail business revenue of 1.336 billion yuan /-6.00%, gross profit of 31.68% Universe 0.64pct; revenue of brand marketing operation services of 45 million yuan /-8.04%, gross profit margin of 50.67% soybean 0.51pct; other business income of 0.58 billion yuan /-33.18%, gross profit margin of 24.37%/+19.55pcts.
(2) from the perspective of sub-platform, the emerging channels are growing rapidly. The revenue of 2023H1 Tmall domestic platform and Tmall international platform respectively reached 1.71 billion yuan, which was-14.54% and 35.88% compared with the same period last year. Tmall platform had 63 stores, with a net decrease of 4 in the first half of the year. The growth performance of emerging channel business is outstanding, with revenue from other platforms (mainly Douyin) reaching 236 million yuan, + 72.49% year-on-year. The company operated 46 Douyin stores at the end of the reporting period, with a net increase of 10 in the first half of the year.
Develop new categories, invest in new brands and expand new channels.
Based on its own advantages and developing new categories, during the reporting period, the company reached cooperation with Dr.JE, Oubangqi, Henkel Jiaqing and other brands to enter the food, pet and other fields; develop its own brand & incubate its own brand; during the reporting period, its own brand "taste file" grew rapidly, reached a strategic cooperation with Shaxian snack group, and invested in the light food brand "Perfect Bowl", which is expected to become a new growth point; continue to expand new channels, accounting for nearly 15% of revenue.
Investment advice:
Buy-An investment rating. As the consumption power of residents still needs to be restored, combined with the performance in the first half of the year, we expect the company to achieve revenue of 33.043640Universe 4.011 billion yuan from 2023 to 2025, which is 13.19% compared with the same period last year. It is estimated that the net profit of return to home will be 1.90pm 2.35,288 million yuan, with year-on-year growth rates of + 23.61% and + 22.18% in 2024 and 2025, respectively. The target price for 6 months is 14.27 yuan, corresponding to 23-year 30xPE.
Risk tips: brand operating status risk, high supplier concentration risk, commodity quality control risk and so on.