Event: on August 30, the company released its mid-2023 report that the first half of the year realized operating income of 42.027 billion yuan / year-on-year-13.76%, net profit of 374 million yuan (- 112 million yuan in the same period last year), and deduction of 99 million yuan (94 million yuan in the same period last year). Single Q2 realized operating income of 18.225 billion yuan / year-on-year-15.18%, net profit of-330 million yuan (- 614 million yuan in the same period last year), and non-return net profit of-519 million yuan (- 534 million yuan in the same period last year).
The online efficiency has been improved, and the store side has been continuously optimized and adjusted. 1) in the first half of the year, the company added four new stores, located in Beijing, Shaanxi, Guizhou and Chongqing, with a total area of 20900 square meters, closed 29 supermarket stores, continued to optimize and integrate the end of stores, eliminated long-term loss-making stores, and cautiously opened new stores. by the end of the period, the number of stores had opened was 1008, a decrease of 52 compared with the same period last year, and a total of 105 reserve stores had not been opened. 3) during the reporting period, the revenue of online business was 7.92 billion yuan / year-on-year + 4.4%, accounting for 18.7% of the main business income, of which Yonghui Life's self-operated business realized sales of 4.06 billion yuan, covering 946 stores, with an average daily volume of 295,000 units, monthly average repurchase rate of 48.9%, and sales of 3.86 billion yuan / year-on-year + 10.9%, covering 922 stores. At the same time, as of August, there were a total of 940 online e-commerce warehouses, including 135 basic positions, 131 high-standard half positions, 652 stores and 22 satellite warehouses. 3) the proportion of private brands increased, with sales reaching 1.95 billion yuan / year-on-year + 15.2%, accounting for 4.64%. A total of 60 + brands were introduced in the first half of the year, of which 34 reached strategic cooperation, and the marketing side also made some efforts. During the reporting period, the cumulative brand exposure reached 8600W, brand awareness has been improved.
The gross profit margin has recovered somewhat, and the expense rate has slightly increased compared with the same period last year. 1) 2023H1's gross profit margin is 21.99% / year-on-year + 1.64pct, but Q2 achieves a gross profit margin of 20.83% / year-on-year + 1.66pct, in which online business gross profit margin is the highest in nearly 3 years, mainly benefiting from the continuous optimization of category structure and the improvement of the efficiency of the primary supply chain. 2) the total expense rate of the company in the first half of the year is 21.62% / year-on-year + 1.66pct, and the sales expense rate / management expense rate / financial expense rate / R & D expense rate is 17.29%, 2.25%, 1.59%, 0.49%, respectively, + 1.23/+0.41/-0.01/+0.02pct.
Investment suggestion: the company is the offline supermarket leader in Johnson & Johnson's fresh supply chain. Since the second half of 2020, community group buying and other new channels have attacked, and the company's operation has been challenged to a certain extent; after entering the 2022H1, the company's competitive environment and its own operating conditions have improved, and the company's profitability is expected to improve with the recovery of the macro environment and the recovery of offline passenger flow. It is estimated that the net profit of homing from 2023 to 2025 is 352 million / 649 million / 1.005 billion respectively, and the EPS is 0.04yuan / share, 0.07yuan / share and 0.11yuan / share respectively, maintaining the "buy" rating.
Risk tips: manpower, rental costs increased significantly; shop expansion is not as expected; industry competition is obviously intensified.