YONGHUI SUPERSTORES(601933) 长江证券·2024-08-29 04:15Investment Rating - The report maintains a "Buy" rating for Yonghui Superstores (601933 SH) [6] Core Views - Yonghui Superstores reported H1 2024 revenue of RMB 37 78 billion, down 10 1% YoY, with net profit attributable to shareholders of RMB 280 million, down 26 3% YoY [2][5] - Q2 2024 revenue was RMB 16 11 billion, down 11 6% YoY, with a net loss of RMB 460 million, widening by 39 5% YoY [5] - The company closed 62 stores and opened 5 new ones in H1 2024, resulting in a total of 943 stores [5] - Online business revenue was RMB 7 84 billion, down 1% YoY, while self-operated home delivery service "Yonghui Life" achieved sales of RMB 4 22 billion, up 4% YoY [5] - The company's gross margin was 21 6% in H1 2024, down 0 41pct YoY, mainly due to a decline in the service business gross margin [6] - Yonghui is undergoing store optimization and reform, with adjustments in product mix, pricing, store environment, and employee benefits, supported by industry leader Pang Donglai [6] Financial Performance - H1 2024 retail business revenue was RMB 35 36 billion, down 9 45% YoY [5] - The company introduced 20,000 new products and eliminated 22,000 products in H1 2024, with a new product introduction rate of 22 5% and an elimination rate of 24 9% [6] - Own-brand sales reached RMB 1 28 billion, accounting for 3 4% of total revenue [6] - Total operating expenses in H1 2024 decreased by 10 1% YoY to RMB 8 17 billion, with an expense ratio of 21 6%, flat YoY [6] Future Outlook - The company is expected to achieve EPS of RMB 0 01, 0 03, and 0 05 in 2024, 2025, and 2026, respectively [6] - Yonghui is focusing on supply chain and digitalization improvements, with ongoing store reforms expected to enhance competitiveness and profitability [6]