Yonghui Supermarket (601933): Focusing on the main business of the supermarket and showing significant results

Yonghui Supermarket (601933): Focusing on the main business of the supermarket and showing significant results

Event company released semi-annual report: 2019H1 company realized revenue of 411.

76 ppm, an increase of 19 in ten years.

71%; net profit attributable to mother 13.

69 ppm, an increase of 46 in ten years.


  Single Q2 company achieved revenue of 189.

4 ppm, an increase of 21 in ten years.

18%, net profit attributable to mothers2.

450,000 yuan, an annual increase of 32.

The 25% brief evaluation performance is consistent with the express report, which is in line with expectations 天津夜网 that the company’s revenue in 2019H1 will increase by 19%.

71% to 411.

7.6 billion, net profit attributable to mothers increased by 46.

69% to 13.

69 ppm; single Q2 revenue also increased by 21.

18% to 189.

400 million, net profit attributable to mother increased by 32.

25% to 2.

4.5 billion.

The company’s performance is basically consistent with the express report and meets expectations.

  Focusing on the main business of the supermarket, the store network continues to expand. In 2019H1, the company added 84 new stores (excluding MINI stores), of which 21/25 were newly opened in Q1 / Q2 respectively. In May, it consolidated the Parkview Yonghui 38 Bravo stores, H1.The total number of stores at the end was 791, covering 24 provinces (municipalities directly under the central government), and 249 stores 苏州桑拿网 have gradually been opened. The store has abundant resources. It is expected that H2 will help maintain a high booth speed.

  The MINI business model has been opened up, Q2 expansion and acceleration H1 MINI stores opened 398, Q2 opened 305 stores, Q2 expansion speed increased significantly.

At present, MINI stores have covered 50 cities in 19 provinces, with an average store area of 488 square meters, and H1 achieved revenue of 5.

5 billion.

  Same store growth rate of 3%, H2 same store is expected to maintain a high growth driven by food CPI 19H1 company same store growth rate of 3.

1%, mainly driven by the increase in customer unit prices.

Since July-August, the continuous growth rate of food CPI has remained at a high level, which is expected to drive the company’s H2 same store to maintain a high growth rate.

  Increased the construction of its own brand, and the product structure has been continuously optimized. H1 has sold 44 of its own brands, with 1022 SKUs of its own brands.

Own brand C end section 7.

8.6 billion, accounting for 2%.

1%, of which one hundred five.

4.4 billion, fresh 2.

4.2 billion; B-end budget 7.

1.4 billion, of which one hundred four.

50 billion, fresh 2.

6.4 billion.

  Continuous layout of home-to-home business, JD.com cooperation, self-built system, two-pronged approach. In 2019, H1’s supermarket home-to-home business has covered 22 provinces, autonomous regions, and 109 cities. A total of 518 stores received home services and home warehouses.

3 trillion, with an average monthly growth rate of 7.
H1’s online sales accounted for 3.

4%, a significant increase of 111% each year.

The company’s senior management deepened its cooperation with JD. H1 JD.com connected the company’s 407 supermarket stores with an increase of 112; gradually, the company further supported the C-terminal application of the home business and the construction and optimization of the online platform.Development landing and promotion.

At present, the community group purchase has been promoted and applied in 300 general stores, with more than 70,000 users and more than 100,000 effective orders.

  The gross profit margin has been affected by the consolidation and profitability, and the fee control effect is good. The H1 company’s gross profit margin decreased by 0.

6 pct to 21.

8%, which is expected to be mainly affected by the merger of Baijia Yonghui and the newly opened stores; the rate of increase during H1 will decrease by 1.

9 pct to 18.

2%, of which sales / management / financial expense ratios are -0.

72 pct / -1.

38 pct / + 0.

24 pct to 15.

19% / 2.

66% / 0.

37%, the company’s period expense ratio fell mainly due to the reduction of equity incentive expenses2.

0.8 billion to 1.

36 billion.

Reduced expense ratio. Overlapping color fresh food.

3 billion, driving H1 companies to increase their net profit margin by 1.

2 pct to 3.

3%, the profitability improved significantly.

  Cash flow increased significantly, inventory turnover days increased slightly H1’s net operating cash flow increased by 52.

87% to 20 ppm, with single Q2 exceeding -2 by 18Q2.

100 million turned to 3.

800 million, a significant improvement.

H1’s inventory turnover days increase by 5 each year.

8 days to 40.

Within 7 days, it is expected to be mainly affected by the increase in the scale of inventory with the expansion of sales; H1 accounts payable turnover days exceeded the increase by 3.

In one day, the upstream bargaining power was further improved.

  Investment suggestion: The company focuses on the main business and has significant benefits. The MINI format Q2 has accelerated its expansion. In the second half of the year, due to the low base in the previous period, its performance is highly flexible and can be expected.

  It is expected that the company’s net profit attributable to its parent from 2019 to 2020 will be 24.

3, 33.

300 million, corresponding to PE 40X, 29X, raised to the “buy” level.

  Risk factors: Declining consumption boom; intensified competition in the industry; less-than-expected development of new businesses