The company's net profit for the first half of 2021 increased by 140% to 155% compared with the same period last year. The company issued a half-year performance forecast for 2021: the company's net profit for the first half of 2021 was 193.9216 million yuan to 206.0417 million yuan, an increase of 140% to 155% over the same period last year, corresponding to earnings per share of 0.1391 yuan per share to 0.1478 yuan per share. In the same period last year, the company's return net profit was 80.8007 million yuan, corresponding to earnings per share of 0.058 yuan per share.

The company's good performance recovery in 2021 led to a substantial increase in performance during the reporting period, mainly due to the following two reasons: 1) the low base effect in the first half of 2020: affected by the COVID-19 epidemic, the company's subordinate stores closed in stages in the first half of 2020, passenger flow decreased and revenue dropped sharply. And the sales return of Changsha Youyou Wuyi Plaza Commercial Co., Ltd. due to the termination of the original management right transfer contract, which affects the company's revenue, gross profit and net profit belonging to the listed company. 2) in the first half of 2021, while normalizing the work of epidemic prevention and control, the company paid close attention to the hot spots of market consumption, continuously improved its operating capacity, and passenger flow continued to pick up, thus leading to the overall improvement of the company's overall business performance.

On April 20, 2021, the company formally reached a strategic cooperation with Tmall, and both sides joined hands in online shopping in the same city, opening a new consumption model of buying in the same city, and meeting more consumption needs of the new generation with one click. The company will buy in the same city, sell in the same city, send in the same city, seamlessly link the orders of the shopping malls, complement each other with Tmall's advantages, and provide new space and new possibilities for realizing the full view of online and offline consumers. At the same time, the company launches the "same day" and "next day" services, which can be delivered on the same day before 2: 00 p.m. and the next day after 2: 00 p.m., according to the time when the user places the order. The cooperation with Tmall in the same city purchase is an important measure for the company to actively explore public domain traffic in addition to the development of private domain traffic. At the same time, the company continues to promote the digital and intelligent transformation of stores, enhance the interactive experience online and offline, and promote the deep integration of online and offline. Take the member management as the center, realize the fine operation with the help of the member system, increase the proportion of young members, and deeply study the consumption demand of the generation growing up on the Internet. increase the consumption stickiness of young people in the aspects of originality, creativity, performance-to-price ratio, sociability and so on.

Maintain the profit forecast and maintain the "overweight" rating

The company's performance is in line with expectations, and we maintain the forecast for the company's 2021 / 2022 / 2023 EPS of 0.21110.23x0.25 yuan. The company's online business line has been expanded, which will help the company to further promote the online and offline integrated development strategy and maintain the "overweight" rating.

Risk hint

The fierce competition in Hunan retail market has intensified, and the training period of new stores is longer than expected.