门店数量基本稳定，公司现阶段重心在提质增效：2024Q1，公司百货/超市/ 电器/ 汽贸业态实现收入为7.7/ 19.9/ 7.9/ 12.5 亿元，同比-5%/ -3%/ +5%/ -10%；毛利率为73%/ 28%/ 19%/ 6%，同比-0.9/ -1.8/ +0.4/ -2.0pct。本季度末，公司百货/超市/电器/汽贸业态的门店数为50/ 152/ 41/38 家，较年初均持平；其中百货门店没有变化，超市、电器、汽贸业态毛开店数及关店数均为1 家。Performance summary: 2024Q1, the company achieved revenue of 4.85 billion yuan, -4.6% year on year; realized net profit to mother of 435 million yuan, -15.1% year on year after adjustment; after deducting items such as profit and loss from changes in fair value (mainly due to changes in Dengkang Dental's stock price), non-net profit was 446 million yuan, -2.7% year on year after adjustment. We believe that the main reason for the decline in the company's revenue was that the 2023Q1 period coincided with a rebound in consumption after the recovery of the epidemic, and the base was high.
Continuously improving operating efficiency and increasing profit margins: 2024Q1, the company's gross margin/net profit margin after deduction was 28.2%/9.2%, +1.07pct/ +0.14pct year-on-year. The company has continued to push forward state-owned enterprise reforms in recent years, and its operating efficiency has gradually improved. In terms of cost ratio, the company's sales/management/R&D/finance expenses ratio was 13.2%/4.2%/0.1%/0.3%, respectively, +0.10/ -0.54/ -0.05/ -0.35pct compared to the same period.
By business sector: The main sources of the company's business are divided into ① the main retail business; ② immediate consumer finance company investment income. 2024Q1, the company's investment income in joint ventures was 166 million yuan, -7.5% year-on-year. Using non-net profit minus investment income in joint ventures, we estimate that the company's net profit from the main retail business in 2024Q1 was approximately 280 million yuan, -1% year-on-year before adjustment.
The number of stores is basically stable. At this stage, the company's focus is on improving quality and efficiency: 2024Q1, the company's department store/supermarket/ electrical/auto trade business achieved revenue of 7.7/ 19.9/ 7.9/ 1.25 billion yuan, -5%/-10% year-on-year; gross margin was 73%/28%/19%/6%, -0.9/ -1.8/ +0.4/ -2.0pct year over year. At the end of this quarter, the number of stores in the company's department store/supermarket/electrical/auto trade business was 50/152/41/38, the same as at the beginning of the year; there was no change in department stores; the number of department stores opened and closed in the supermarket, electronics, and auto trade business was 1.
Profit forecast and investment rating: The company is undervalued and has a high dividend rating. The company's dividend rate increased from 31% in 2022 to 46% in 2023. As the company transforms its supply chain and operating efficiency, it is expected that profit margins will be further improved; experiments such as retail “six major stores” and “hard discount stores” are expected to open up room for revenue growth. We maintained the company's net profit forecast for 2024-26 at 14.5/15.9/17.01 billion yuan, an increase of 10.2%/10.0%/7.5% year-on-year, and the closing price on April 30 corresponds to 8/7/7 times P/E. Maintain a “buy” rating.
Risk warning: Increased competition in the industry, sluggish demand for terminal consumers, changes in consumer finance operations and policies, there is still uncertainty about the implementation progress of reverse absorption of the Chongqing Trading Company, etc.
