Event description
The company disclosed the semi-annual report: in the first half of 2023, the company realized operating income of 6.232 billion yuan, an increase of 0.01% over the same period last year, realized net profit of 215 million yuan, an increase of 34.06% over the same period last year, and realized attribution deduction of non-net profit of 139 million yuan, an increase of 24.5% over the same period last year.
Event comment
In the second quarter alone, the company's buying 100 business ushered in restorative growth, and the overall gross profit margin increased, deducting non-profits continued to reduce losses.
In the first half of the year, the revenue of the company's retail format (proprietary) increased by 0.8% compared with the same period last year, of which Buy 100 increased by 8.17% compared with the same period last year, and the supermarket decreased by 2.74% compared with the same period last year. In terms of switching stores, the company paid attention to the quality of opening stores and adjusted the stock of stores. During the reporting period, a total of 1 store was opened, with a net decrease of 2 supermarket stores and 1 net purchase of 100 stores, and the opening speed slowed down. Focusing on the second quarter, the company's Q1/Q2 revenue changed-2.2% peg 2.8% Q2 growth increased month-on-month, mainly due to the month-on-month increase in the growth rate of Buy 100 business, and the year-on-year change of Q1/Q2 100 revenue was 1% 10% compared with the same period last year. The growth rate increased mainly due to the fading of the impact of the epidemic. Excluding the base, it is estimated that two-year CAGR 0.68% On the other hand, the revenue of the supermarket has changed by 2% over the same period last year. It is expected that the hoarding demand in the same period last year will have a high base impact, which will lead to a decline in supermarket business. The estimated CAGR in two years is 2.67%. In the profit dimension, the company's gross profit margin increased by 3.34% in the second quarter alone. Considering the 0.6% increase in comparable supermarket gross profit margin, it is expected that the gross profit margin of Buy 100 business will also pick up to a certain extent. Sales expense rate / management expense rate / R & D expense rate / financial expense rate decreased by 0.24 percentage points, 0.1 shock, 0.03 shock, 0.78 percentage points compared with the same period last year, and the cost side remained good. Overall, due to the restorative growth of Buy 100 business. As well as the increase in gross profit margin and cost-side control, the company deducted a non-net loss of 32.65 million yuan in the second quarter, narrowing the loss by 124 million yuan.
During the reporting period, the company seized the opportunity of consumer recovery, relying on the strength of catering business, the third-party platform of supermarkets and counter-to-home shopping to achieve rapid growth, and speed up the development of structural business, and comprehensively achieve restorative sales growth. In the first half of the year, the company's sales increased by 8.65% compared with the same period last year, mainly from: first, the company took catering as a breakthrough, launched IP activities to promote the recovery of catering, and turned online traffic into offline physical consumption to promote the growth of offline passenger flow in shopping centers. Second, the steady development of online business, online goods sales and digital services revenue of about 2.76 billion yuan, of which supermarket-to-home sales increased by 6.7% over the same period last year, third-party platform-to-home sales increased rapidly, and counter-to-home sales increased by 15.7%. Third, the physical group-buying of the company's TO B business continued to grow, with sales up 6.3% year-on-year and 139% year-on-year sales of to C shopping cards. On this basis, the company continues to promote digital capabilities and constantly iterate business models, as shown in: strengthening the construction of middle and background capabilities, realizing the full-format commodity integration of 100 + supermarkets + e-commerce recommended by Tianhong APP; the strategy of strategic core commodity group continued to deepen, and the sales of strategic core commodity group increased by 2% over the same period last year. Continuously optimize the cost structure, improve the traditional business input savings, use RPA robot, Tianhong GPT and other technologies to replace labor, build and optimize digital operation management platform and tools, save manpower and improve human efficiency.
Investment advice: since the first half of the year, the company has seized the opportunity of consumer recovery to promote omni-channel performance, in addition, actively adjust and optimize retail stores, focus on high-quality supply chain is expected to improve endogenous operating efficiency, and carry out digital transformation and omni-channel strategy is expected to open up incremental growth space for the company. It is estimated that the 2023-2025 attributable net profit is 2.69,3.01 and 411 million yuan, corresponding to the 2023 forecast company PE valuation of 27 times. Maintain a "buy" rating.
Risk hint
1. Consumption may fluctuate or resume.
2. The cultivation of the new store is not up to expectations.