The impact of community group buying, the impact of new leasing standards, maintaining the semi-annual report released by the "holding" rating company on August 30, 21H1 achieved revenue of 7.31 billion yuan, down 14.1%. The decline in revenue is mainly due to the change in the income caliber of household appliances business (full to net), the impact of community group buying, and the impact of corporate channel adjustment. The net profit of 21H1 is 210 million yuan, an increase of 25.1%. The increase is mainly due to the one-time thickening of 350 million yuan of net profit issued by REITS; the net profit of deducting non-return is reduced from 140 million yuan of 20H1 to-130 million yuan, mainly due to the impact of community group buying, increased financial costs of new leasing standards, increased sales costs of new stores and channel adjustment. We estimate that the return net profit of the company from 2021 to 2023 will be 2.0,2.0 and 230 million yuan respectively. Considering that the company's 21-year profit is greatly affected by the investment income, we will give the company 2022 31xPE with a target price of 7.04yuan and maintain the "overweight" rating with reference to the Wind comparable company's 2022 31.4xPE.
According to the channel adjustment, 15 supermarkets have opened or closed 15 new supermarkets and 3 21H1 department stores. The company has made great channel adjustments. While opening 15 new supermarket stores, it has closed 15 supermarket stores which have no hope of reversing losses or property rents in 2-3 years. There are three department stores. The channel adjustment superimposed the impact of community group buying and 20H1 high base, and the company's 21H1 supermarket realized 5.66 billion yuan in revenue, a drop of 14.7%. The department store business benefited from 20H1's low base, with revenue rising 25.4 per cent to 340 million yuan.
Hunan area is the important town of community group purchase layout. Under the fierce competition, the profitability of the company declines greatly. Hunan area is the birthplace of community group purchase, and it is the important town of community group purchase giant layout. Under the fierce price competition, the company's supermarket gross profit margin decreased significantly, with 21H1 gross profit margin of 19.3%, with the same reduction of 0.41pct (20-year net profit rate of only 0.76%). At the same time, due to the influence of new store cultivation and leasing standards, the company's 21H sales expense rate increased by 4.2pct to 25.2%, and the financial expense rate increased by 1.5pct to 3.6%.
REITs issues an one-time contribution of 470 million yuan in investment income
On June 30, the REITs project of Bubugao Plaza, which is located in Jinxing Road, Changsha, was successfully issued with an issue scale of 780 million yuan. Thanks to this, the company's 21H1 increased its profit by 350 million yuan at one time, accounting for 163.2% of the company's total net profit.
It is still in the adjustment stage to maintain the "overweight" rating.
Under the impact of innovative formats, the company is still in the stage of adjustment. We estimate that the return net profit of the company from 2021 to 2023 is 2.0,2.0,230 million yuan respectively (the previous value is 2.9,3.3,360 million yuan, mainly due to leasing criteria, channel adjustment, reduction of gross profit margin, increase of sales and financial expense rate). Considering that the company's 21-year profit is greatly affected by the investment income, with reference to the company's 2022 31.4xPE, the company is given the 2022 31xPE with a target price of 7.04yuan (the previous value is 8.50yuan) to maintain the "overweight" rating.
Risk tips: the transformation of fresh supply chain is not as expected, the digital upgrade is not as expected, and the impact of community group purchase is intensified.
