The company's 2020 revenue decreased by 32.57% compared with the same period last year, and the company's net profit decreased by 46.54% compared with the same period last year. The company announced its 2020 annual report: it realized operating income of 8.389 billion yuan in 2020, down 32.57% from the same period last year; realized net profit of 143 million yuan, equivalent to 0.17 yuan of fully diluted EPS, a decrease of 46.54% over the same period last year; and realized deduction of 78 million yuan of non-return net profit, a decrease of 65.68% over the same period last year.

In a single quarter, 4Q2020 achieved operating income of 1.959 billion yuan, down 35.63% from the same period last year; realized net profit of 90 million yuan, equivalent to 0.10 yuan of fully diluted EPS, an increase of 73.84% over the same period last year; and realized deduction of 72 million yuan of non-return net profit, an increase of 27.69% over the same period last year.

The company's comprehensive gross profit margin rose by 4.25 percentage points in 2020, and the expense rate rose by 5.48 percentage points during the period. The company's comprehensive gross profit margin in 2020 was 27.73%, an increase of 4.25 percentage points over the same period last year. In a single quarter, 4Q2020's comprehensive gross profit margin was 28.93%, up 5.41% from a year earlier.

In 2020, the company's expense rate during the period was 24.86%, an increase of 5.48% over the same period last year, of which the sales / management / financial expense rate was 15.64%, 7.52% and 1.70%, respectively, and the year-on-year change was + 3.61 / + 1.25 pm 0.62%, respectively. The expense rate of 4Q2020 during the period was 25.35%, an increase of 6.21% over the same period last year, of which the sales / management / financial expense rate was 17.87%, 6.86% and 0.61%, respectively, and the year-on-year change was + 5.12% 1.66% /-0.56% respectively.

Obvious regional advantages, logistics and supply chain system to build competitive advantage during the reporting period, Jiaozhou Wisdom supply chain and Grain Industry Park as well as East China supply chain and modern logistics headquarters base were officially opened, with a logistics storage area of 400,000 square meters. Bean products factory, bean sprout factory and other formal production, the company further expanded to the upstream production and processing field, tamping the core barriers of the supply chain. By the end of 2020, the company has a total of 89 large retail stores, convenience stores and 81 "Fuji Farm" fresh community stores.

Large retail stores cover an area of 229.84 million square meters, and there are nearly 30 agency subsidiaries of various brands, including more than 700 well-known brands of department stores, supermarkets and household appliances at home and abroad, and more than 5000 channel cooperation brands.

Maintain the profit forecast and maintain the "overweight" rating

The company's performance slightly exceeded expectations, we maintain the company's 2021 EPS 2022 forecast of 0.23 pounds 0.26 yuan, an additional forecast of 0.29 yuan for 2023. The company's improvement of the warehousing and logistics system will further enhance the company's regional competitive advantage and maintain the "overweight" rating.

Risk hint

The integration of acquired stores did not meet expectations, and competition in the regional retail market intensified.