The company's 1Q2024 revenue increased 1.80% year on year, and net profit to mother decreased 2.37% year on April 29. On April 29, the company announced its 2024 quarterly report: 1Q2024 achieved operating income of 1,672 billion yuan, up 1.80% year on year, and realized net profit of 91 million yuan, converted into fully diluted EPS of 0.18 yuan, a decrease of 2.37% year on year, achieving net profit deducted from mother of 79 million yuan, a year-on-year decrease of 8.66%.
The company's 1Q2024 comprehensive gross margin increased 0.09 percentage points, and the cost ratio increased 0.67 percentage points during the period 1Q2024, and the company's consolidated gross margin was 39.70%, up 0.09 percentage points from the previous year.
The 1Q2024 company's expense ratio for the period was 29.91%, up 0.67 percentage points year on year. Among them, sales/management/finance/R&D expenses were 22.56%/2.85%/4.44%/0.07%, respectively, with year-on-year changes of +0.87/-0.13/+0.06/-0.13 percentage points, respectively.
The revenue performance of supermarkets and shopping centers was good. The gross margin declined slightly in 1Q2024. The company opened 1 new store, and the company closed 1 store on April 1, 2024. By region, the company's revenue growth rates in Weifang and Liaocheng were high, with year-on-year increases of 9.28% and 9.50%, respectively. By business type, the revenue performance of the company's large supermarkets and shopping centers was excellent, with year-on-year increases of 6.42% and 4.95%, respectively. The department store business was under relative pressure, and revenue decreased by 5.04% year-on-year. From the perspective of gross margin, the gross margin of the company's main business categories all declined slightly year-on-year.
In terms of operation, in 2023, the company sorted out the four business lines of shopping, supermarkets, online, and group purchases to achieve relatively independent operation of the department line. Using stores as the base, optimize the authority and responsibilities of the “headquarters-region-store” three-level management system, select 9 operating stores to pilot a new management responsibility system, closely link performance pay to store profits, and stimulate the store's internal vitality. On the supply chain side, in 2023, the company strengthened cooperation with leading enterprises, cooperated with key enterprises at the national and provincial levels, and actively promoted cooperation with upstream, source bases, and manufacturers, expanded the “supermarket+base” model, piloted direct overseas procurement, moved from “picking the whole country” to “picking the world”, and building zones for imported products at Jinan Plaza Store and Jinan Yuhan Store.
Raise profit forecasts and maintain the “increase in holdings” rating
The company's profit performance exceeded our previous expectations, mainly because the recovery of the company's supermarket business exceeded our expectations, indicating that the results of the company's optimization and adjustment business in 2023 were good, which is conducive to improving the company's future profit performance. We raised our 2024/2025/2026 EPS forecast by 13%/17%/20% to 0.17/0.20/0.22 yuan. The company is based in the Shandong market and has strong brand, scale and channel advantages. The supply chain and offline stores are continuously optimized to maintain the “gain” rating.
Risk warning: Some store leases cannot be renewed when they expire, and the pace of new business formats and new store expansion falls short of expectations.