The company's 2022 revenue decreased 17.14% year-on-year, achieving net profit of -159 million yuan. On April 12, the company announced its 2022 annual report: 2022 achieved operating income of 6.920 billion yuan, a decrease of 17.14% from the previous year, and realized net profit of -159 million yuan (28 million yuan in the same period in 2021), converted to -1.00 yuan after fully diluted EPS, which achieved net profit of -258 million yuan after deducting Fangmu's net profit of -258 million yuan, and the same period in 2021 was -031 million yuan.
Looking at a single-quarter split, 4Q2022 achieved operating income of 1,471 million yuan, a year-on-year decrease of 28.62%, and achieved net profit of -103 million yuan (-41 million yuan for the same period in 2021), converted into a fully diluted EPS of -0.64 yuan, achieving net profit of -129 million yuan after deducting non-homo net profit of -129 million yuan, and -77 million yuan in the same period of 2021.
The company's consolidated gross margin increased by 0.32 percentage points in 2022, and the cost rate for the period increased by 4.77 percentage points. The company's comprehensive gross margin in 2022 was 40.76%, up 0.32 percentage points from the previous year. Looking at a single-quarter split, 4Q2022's comprehensive gross margin was 49.35%, up 8.74 percentage points from the previous year.
The cost rate for the company period in 2022 was 39.25%, up 4.77 percentage points from the previous year. Among them, the sales/management/finance expense ratio was 8.17%/24.34%/6.73%, respectively, and +0.13/ +3.80/+0.85 percentage points respectively over the previous year. The 4Q2022 company's expenses rate for the period was 48.79%, up 10.63 percentage points from the previous year. Among them, the sales/management/finance expenses ratio was 9.83%/31.31%/7.65%, respectively, and the year-on-year changes of +1.19/+8.35/ +1.08 percentage points respectively.
Project engineering is progressing in an orderly manner, and the degree of online development continues to increase
By the end of 2022, the company had 144 stores, including 40 shopping centers (department stores), 3 large general stores, 81 supermarket chains, and 20 other operating departments. In terms of project progress, in 2022, the second phase of the company's Meihe Eurasia Shopping Center was completed and welcomed. The first phase of the Siping Residence and the second phase of the Liaoyuan Shopping Center progressed in an orderly manner. On the online side, the company used platforms such as mini-programs, public accounts, and home delivery to carry out social, online shopping, and live streaming activities to speed up the integration of offline and offline.
Raise profit forecasts and maintain the “increase in holdings” rating
The company's advantageous stores are mainly located in Jilin Province and other regions, and were greatly affected by the impact of the epidemic in 2022. We believe that as the economy continues to improve, offline consumption in 2023-2025 will show a continuous recovery trend. Therefore, we maintained the company's 2023 EPS forecast of 0.07 yuan, raised the company's 2024 EPS forecast 37% to 0.16 yuan, and added 0.28 yuan to the company's 2025 EPS forecast. The company has strong brand recognition in the Jilin region. The project is progressing smoothly, the degree of online integration is constantly increasing, and the “increase in holdings” rating is maintained.
Risk warning: Regional economic growth falls short of expectations, and the operating conditions of major stores in Eurasia have fallen short of expectations.