Comments on Yimin Group's (600824) First Quarterly Report: The performance is in line with expectations, and the reform and transformation are carried out in an orderly manner
The net profit of 15Q1 increased by 10.06% year on year, which was in line with expectations: the company's revenue reached 912 million yuan in 15Q1, up 9.97% year on year (the growth rates of 14Q1-Q4 were 1.62%, 0.74%, 16.02% and -4.34% respectively); The net profit attributable to the parent company was 56 million, with a year-on-year increase of 10.06% (the growth rates of 14Q1-Q4 were 8.57%, 9.58%, 12.89% and 62.34% respectively); Net profit attributable to parent company after deducting non profits was 41 million, down 13.05% year on year; EPS is 0.064 yuan; The weighted average ROE was 3.09%, a year-on-year increase of 0.06 percentage points.
The omni channel expansion helped to expand the revenue scale, and the investment income contributed to the performance increase of the current period: after the online and offline omni channels were opened, the "ancient and modern", "Tianlong Baofeng" and other old brands broke out again, and the sales scale expansion led to the revenue of the current period reaching 912 million, up 9.97% year on year. In addition, the increase in wholesale sales of Tianbao Longfeng gold, silver and jewelry led to a decrease in gross profit margin. The current comprehensive gross profit margin was 20.8%, 3.06 percentage points lower than the same period last year. The expenses of the current period were properly controlled. The period expense rate was 14.13%, 0.3 percentage points lower than that of the same period last year. Among them, the sales expense rate is 7.80% (-0.29pct) and the management expense rate is 5.15% (-0.22pct); The financial expense rate is 1.18% (+0.21pct). The gross profit rate declined, but the net profit rate declined slightly due to the effective cost control. The net interest rate of the current period was 6.39%, down 0.1 percentage point year on year.
Stable brand operation and active layout transformation in the context of state-owned enterprise reform: 1. Stabilize the existing brands and make efforts online to help the subsequent development. 2. The fund model cuts into new areas, and the transformation idea is gradually clear. 3. The equity ratio of Dongfang Pawn increased to 52%, creating a quasi financial platform. 4. The self owned property is rich in providing margin of safety, and the main business is single, benefiting from the strong expectation of state-owned enterprise reform.
Maintain the profit forecast and maintain the overweight - A rating. The company is the main revenue target of state-owned enterprise reform in Shanghai. It is committed to creating a diversified business operation pattern of brand underwear, jewelry, and property leasing. At the same time, it actively distributes financial investment, and the fund model cuts into new areas. In the future, the transformation of finance+emerging areas and the implementation of state-owned enterprise reform policies will open up imagination space, and the company's valuation will continue to improve. We estimate that the company's EPS will be 0.25 yuan, 0.29 yuan and 0.35 yuan respectively in 15-17 years. The current share price corresponds to PE of 45 times, 38 times and 32 times. Maintain the profit forecast and maintain the overweight - A rating.
Risk warning: macroeconomic weakness; The reform of state-owned enterprises is progressing slowly.
