The company's 1Q2023 revenue decreased 22.47% year on year, and Guimo's net profit decreased 79.10% year on April 28. On April 28, the company announced the first quarter report of 2023:1Q2023 achieved operating revenue of 2,617 million yuan, a decrease of 22.47% over the previous year, and achieved net profit of 146 million yuan in Guimo, equivalent to fully diluted EPS of 0.03 yuan, a decrease of 79.10% over the previous year, after deducting net profit of 216 million yuan from the previous year, a decrease of 54.50% from the previous year.
The profit and loss resulting from changes in the fair value of investment real estate that 1Q2023 company subsequently measured using a fair value model was -604.49,900 yuan, compared to 885.745 million yuan for the same period in 2022.
The company's consolidated gross margin for 1Q2023 decreased by 1.65 percentage points, and the cost rate for the period increased by 5.28 percentage points. 1Q2023's comprehensive gross margin was 59.81%, down 1.65 percentage points from the previous year.
The 1Q2023 company's expense ratio for the period was 41.31%, up 5.28 percentage points from the previous year. Among them, the sales/management/finance/R&D expenses ratio was 9.83%/11.16%/20.13%/0.19%, respectively, which changed +1.59/ +0.68/+3.22/ -0.21 percentage points from the previous year.
The performance of 1Q2023 is under relative pressure. The Xiamen Municipal State-owned Assets Administration Commission will close 2 self-operated shopping malls for the actual controller 1Q2023, turn 1 self-operated shopping mall into a managed mall, open 2 new managed shopping malls, and close 2 commissioned shopping malls. By the end of March 2023, the company operated 91 self-operated shopping malls, 285 managed shopping malls, and operated 8 home furnishing malls through strategic cooperation; there were 19 self-operated shopping malls in preparation (16 owned properties, 3 leased), and 309 commissioned shopping malls in the preparation had obtained land use licenses/land plots. The operating income of the 1Q2023 company, which has opened its own shopping mall, fell -24.40% year on year, and gross margin fell 4.1 percentage points year on year.
<股份转让协议>On April 26, 2023, Red Star Holdings, Mr. Che Jianxing, C&D Co., Ltd. and MediaTek Group jointly signed the “Supplementary Agreement on this”. According to the agreement, after the share transfer is completed, C&D Co., Ltd. will hold 23.95% of the company's shares, Lianfa Group will hold 6% of the company's shares, the controlling shareholder of the company will be changed to C&D shares, and the actual controller of the company will be changed to the Xiamen Municipal State-owned Assets Administration Commission.
Profit forecasts were lowered to maintain the original ratings
The company's performance fell short of our previous expectations, mainly because the recovery process of demand in the real estate industry chain fell short of expectations. We lowered the company's 2023/2024/2025 EPS forecast by 32%/33%/34% to 0.16/0.19/0.21 yuan. The company is speeding up the construction of theme pavilions and optimizing the brand layout, which is conducive to further raising the company's rent, maintaining the “buy” rating of the company's A shares, and maintaining the company's H-share “increase” rating.
Risk warning: The expansion of stores and rent increases did not meet expectations, the effects of digital transformation did not meet expectations, and profit and loss fluctuations from changes in fair value were greater than expected.