YONGHUI SUPERSTORES(SH:601933) Xin Lang Cai Jing·2025-04-29 02:35Core Insights - The company reported its 2024 annual results and Q1 2025 results, with performance in line with expectations [1] Group 1: Financial Performance - In 2024, the company achieved revenue of 67.574 billion yuan, a year-on-year decrease of 14.07%, and a net profit attributable to shareholders of -1.465 billion yuan, compared to -1.329 billion yuan in the same period last year [1] - In Q1 2025, the company reported revenue of 17.479 billion yuan, a year-on-year decline of 19.32%, primarily due to a strategic and operational transformation that resulted in the closure of 273 stores compared to the previous year [1] - The net profit attributable to shareholders for Q1 2025 was 148 million yuan, a significant year-on-year decrease of 79.96%, mainly due to changes in product structure and procurement models, as well as a fair value loss of 172 million yuan from Advantage Solutions stock [1] Group 2: Store Transformation and Online Business - The company actively pursued supply chain reforms, accelerating store transformation, with 7 new supermarket openings and 232 closures in 2024, resulting in a total of 775 stores by the end of 2024, a decrease of 225 stores year-on-year [2] - The company emphasized a "quality retail" reform direction, with 61 stores modified by April 25, 2024, and an expectation to reach 124 modified stores by the end of June [2] - Online business revenue for 2024 was 14.6 billion yuan, accounting for 21.7% of total revenue, with the "Yonghui Life" app surpassing 118 million registered members [2] Group 3: Profitability and Cost Management - The company's gross margin for 2024 and Q1 2025 was 20.46% and 21.50%, respectively, reflecting a year-on-year decline of 0.78 and 1.35 percentage points [3] - The gross margin pressure was attributed to the optimization of product structure and procurement models during store adjustments, with a focus on long-term partnerships with core suppliers [3] - The company’s expense ratio for Q1 2025 was 20.78%, an increase of 1.38 percentage points year-on-year, with specific expenses for sales, management, R&D, and finance reported [3] Group 4: Strategic Developments - On September 23, 2024, a strategic shareholder, Guangdong Jun Cai International Trade Co., acquired 2.668 billion unrestricted shares of Yonghui Supermarket, making it the largest shareholder, with a focus on a "quality retail" development strategy [4] - The partnership aims to enhance private brand development, supply chain reforms, and employee welfare initiatives [4] Group 5: Future Outlook - The company maintains a "buy" rating, anticipating that consumption will be boosted and domestic demand expanded in 2025, with significant improvements expected from store transformations [5] - The company plans to close approximately 300 stores in 2025, with revised net profit forecasts for 2025 and 2026, and a new forecast for 2027 [5] - Revenue projections for 2025 have been adjusted to 60.01 billion yuan, with a PS valuation method applied, indicating a potential upside of 13% [5]