Incident: The company announced its 2023 results, achieving revenue of 7.178 billion yuan, an increase of 13.26%, and net profit to mother of 209 million yuan, a decrease of 30.72%, after deducting net profit of 83 million yuan, a decrease of 70.51%.
Net operating cash flow was $2,405 billion, up 286% from the same period. In 2023, it is proposed to distribute a cash dividend of 0.5 yuan (tax included) for every 10 shares, with a dividend amount of 384.496 million yuan (tax included), and a dividend rate of 18.4%.
Comment:
2023Q4 achieved revenue of 1.74 billion yuan, an increase of 17.9%. Net profit attributable to mother was 91 million yuan, turning a year-on-year loss into a profit. After deducting net loss of 13 million yuan from non-return to mother, a year-on-year decrease of 16 million yuan.
By industry, retail, real estate/ other businesses in 2023 achieved revenue of 62.06/0.80/891 million yuan, compared with +11.52%/-7.37%/+29.97%, gross profit margin of 39.99%/4.48%/99.85%, compared with +1.39/-8.01/+1.18PCT, respectively. By region, in 2023, Hubei Province/Jiangxi Province achieved revenue of 70.07/171 million yuan, accounting for 97.6%/2.4%, and gross margin of 46.83%/55.03% respectively. Among them, Hubei Province's revenue increased 10.57% year on year, and gross margin was +2.08PCT year on year.
In 2023, the shopping center business achieved revenue of 3.2 billion yuan, an increase of 9.15%. Does the company currently have Wushang Mall and Wushang Mall? Eleven major shopping centers, including World Trade, Wushang Dream Era, and Nanchang Wushang Mall, are located in the core business districts of Wuhan, Xiangyang, Xiantao, Huangshi, Shiyan, Laohekou, and Nanchang, Jiangxi.
In April 2023, Nanchang Wushang Mall opened to achieve cross-regional development. The opening rate of the Nanchang Wushang Mall brand exceeds 90%. Its opening marks the formation of a strategic layout for the company to “lead the way” in the Wuhan market and develop collaboratively throughout Jiangxi, Hubei. In 2023, Nanchang Wushang Mall achieved revenue of 143 million yuan, net profit of 558.793 million yuan, and net interest rate of -39%.
Guoguang and Wuguang were integrated into the new Wushang Mall to further optimize resource allocation and expand joint management efforts.
By targeting “first store,” “first launch,” “first exhibition,” and “debut,” we will thoroughly carry out group marketing, diversified marketing, and cross-border marketing to effectively boost new customer traffic. The opening of “WS Dream Park” has filled the gap of a high-rise indoor power park in China, consolidated its position as a “family gathering place” in the dream era of martial arts, and continued to strengthen the integrated development of “business, culture and sports”. In 2023, the subsidiary Wuhan Dream Times achieved revenue of 586 million yuan, net profit of 38.308 million yuan, and a net interest rate of 6.5%.
In 2023, the supermarket business achieved revenue of 2.47 billion yuan, a decrease of 5.23%. As of the end of 2023, the supermarket business had 71 stores, including 47 MINI stores, including 34 stores in Wuhan and 36 stores in other provinces, including Ezhou, Jingzhou, Huanggang, Xiangyang, Yichang, Shiyan, Xiaogan, Huangshi, Xianning, and Xiantao. In 2023, the Wushang supermarket opened 5 new stores, upgraded 3 stores, and expanded 15 small stores.
In 2023, the handover of housing for the Times Garden housing project has not yet been completed. As of the end of 2023, the balance of pre-received housing payments that had not yet been converted into income was $276 million. The project has a total investment of 2,837 billion yuan and a total construction area of 354,400 square meters, of which 278,000 square meters are planned.
The short-term opening of new projects such as Dream Era and Nanchang Wushang Mall brought about an increase in depreciation and amortization expenses, which dragged down the company's profits. In 2023, the company's comprehensive gross profit margin was 47.03%, up 2.28PCT year on year, and the net sales margin was 2.91%, down 1.9PCT year on year; the sales/management/financial expense ratios were 33.75%/2.79%/4.46%, respectively, +4.04/-0.73/+2.50PCT, respectively. Among them, the year-on-year increase in the financial expense ratio was mainly due to an increase in interest expenses; the year-on-year increase in sales expenses was mainly due to large increases in depreciation expenses, intangible asset amortization, and employee expenses brought about by new projects such as Wushang Dream Era and Nanchang Wushang Mall.
Risk factors: New projects fall short of expectations, offline consumption recovery falls short of expectations, and industry competition intensifies.