Yonghui Supermarket (601933) Interim Review: Significantly Improves Profitability, Technology Enables Strategic Development of Companies
Investment highlights: The company announced its semi-annual report for 2019, and its performance was in line with market expectations: (1) 19H1 achieved revenue of 411.
7.6 billion, an increase of 19 years.
71%; net profit attributable to mother 13.
6.9 billion, an increase of 46 in ten years.
Same store growth rate 3.
1%, basically the same as last year.
We calculated that after excluding fair incentive fees, the impact of Yunchuang and fresh food, Yunan’s net profit growth rate was about 25%.
2Q19 revenue was 189.
4 billion, an increase of 21 in ten years.
18%; net profit attributable to mother 2.
4.5 billion, an annual increase of 45.
(2) Mini-shop achieves revenue 5.
500 million, we expect that the mini store will open 1,000 stores this year, the incubation period is extended by 1.
(3) C- / B-side port 7 of own brand.
1.4 billion, SKU reached 1022.
The gross profit margin was under short-term pressure, and the decline in expense ratio increased the level of net profit.
(1) 19H1 gross profit margin of 21.
84%, a decline of 0 every year.
Net interest rate 3.
32%, increase by 1 every year.
Fresh / Food Supplies Gross Margin 13.
58%, down by 1 every year.
Microstructure business structure and category adjustment with falling gross profit level, subdivision system prices rose, and terminal prices rose, resulting in a decrease in fresh gross profit margin.
(2) 19H1 expense ratio is 18.
22%, down by 1 every year.
Sales / management / financial expense ratio 15.
66/0.37%, a year up -0.
72 / -1.
The decrease in management expense ratio was mainly due to the decrease in equity incentive expenses and system development service fees in this period as compared with the previous period.
The speed of exhibition stores maintained growth, and the development of innovative formats and home-based businesses was accelerated.
As of the first half of the year: (1) A total of 791 supermarket-style stores, covering 24 provinces and cities.
84 new supermarket stores were newly opened, Q1 newly opened / Q2 newly opened / Baijia Yonghui Bravo stores 21/25/38.
There are 72 contracted stores and a total of 249 contracted stores.
(2) There are 398 mini stores, covering 50 cities in 19 provinces.
93/305 newly opened in Q1 / Q2 newly opened.
In addition, the company has also merged into 17 Parkin Yonghui mini stores, with a total of 415 mini stores.
(3) Home business covers 109 cities in 22 provinces, and a total of 518 stores provide home services for consumers.
3 trillion, with an average monthly growth rate of 7.
1%, online sales accounted for 3%.
4%, an increase of 111% a year.
JD.com connected 407 supermarket stores at home, adding 112 new stores.
Build an omni-channel operation marketing platform to help the company’s strategic development.
(1) Yonghui Phaeton 2.
0 is fully landing and application.
The second phase of the IHR was completed in the second half of the year. The financial sharing system, engineering-to-asset system, logistics OTB project, supply chain process optimization and system functions were successively promoted and tested.
(2) The application of data intelligence innovation is being comprehensively promoted.
Forecast of warehouse sales in the second half of the year, pilot sales promotion application and satellite warehouse intelligent performance application pilot.
(3) C-side applications that support home-to-home business and online mid-stage construction and optimization.
The community group purchase mini program has been promoted and applied in more than 300 stores, and the number of valid orders in more than one month after the launch has exceeded 100,000.
(4) Support the continuous construction and optimization of the platform of the home system, support the application landing and promotion of the store system, and promote the development landing of the supply chain middle stage and the background application promotion.
Maintain profit forecast and maintain “Buy” rating.
The company has the advantages of fresh produce, establishes a global fresh produce supply chain system and a nationwide logistics system, and accelerates national expansion through mergers and acquisitions integration.
Emerging formats such as mini stores and community stores have been actively deployed, and the market share has continued to increase.
It is estimated that the net profit attributable to mothers will be 24 in 19-2021.
76 trillion, corresponding to EPS are 0.
45 yuan, corresponding to the current expected PE of 40/29/22 times, maintain “Buy” rating.
Risk warning: terminal demand declines, industry competition intensifies, business expansion is less than expected, and costs increase too quickly.