YONGHUI SUPERSTORES(SH:601933) Guotai Junan Securities·2024-11-04 11:44Investment Rating - The report maintains an Overweight rating for Yonghui Superstores (601933) with a target price of 6.59 RMB, up from the previous target of 2.96 RMB [3] Core Views - Yonghui Superstores is undergoing a strategic transformation, focusing on supply chain optimization and store adjustments, which is expected to drive future growth [4] - The company has completed adjustments for 10 stores by Q3 2024, with plans to expand to 40-50 stores nationwide by the Spring Festival [9] - Yonghui has partnered with MINISO to enhance quality retail offerings, leveraging shared resources to improve economies of scale and cost structure [9] Financial Performance - Q1-Q3 2024 revenue reached 54.549 billion RMB, a 12.14% YoY decline, with net profit attributable to shareholders of 77.8657 million RMB, down 130 million RMB from 2023 [9] - Q3 2024 revenue was 16.77 billion RMB, a 16.4% YoY decline, with a net loss of 353 million RMB, narrowing from the Q2 loss of 461 million RMB [9] - The company's self-owned brand revenue reached 1.499 billion RMB in Q3 2024, with 23 new SKUs launched [9] Valuation and Forecast - The report forecasts 2024 EPS at -0.01 RMB, revised from 0.02 RMB, while raising 2025 and 2026 EPS to 0.04 RMB and 0.09 RMB, respectively [9] - The company is valued at 0.82x PS for 2024, higher than the industry average [9] - Total market capitalization stands at 46.01 billion RMB, with a current price of 5.07 RMB [6] Operational Highlights - Yonghui closed 186 underperforming stores in 2024, while opening 7 new stores, incurring short-term closure costs [9] - The company's adjusted stores have shown significant revenue growth, with some stores achieving daily sales of 1.5-1.6 million RMB [9] - Yonghui continues to optimize its product structure and expand its online business, with a focus on improving operational efficiency [9]