Better Life(002251) 信达证券·2025-04-22 07:18Investment Rating - The investment rating for the company is not explicitly stated in the provided documents, but the report indicates a positive outlook due to significant improvements in performance and operational adjustments [1]. Core Viewpoints - The company has successfully implemented the "Fat Transformation" strategy, leading to a substantial turnaround in its business performance, with Q1 2025 showing a revenue increase of 24.22% year-on-year and a net profit increase of 488.44% [1][2]. - The restructuring process completed in 2024 has introduced new investors and improved operational efficiency, which is expected to enhance the company's core competitiveness [3][4]. - The company has made significant adjustments to its store operations, including closing underperforming locations and optimizing its supply chain, resulting in improved sales and profitability [2][3]. Summary by Sections Company Performance - In Q1 2025, the company reported revenues of 1.153 billion, a year-on-year increase of 24.22%, and a net profit of 119 million, up 488.44% [1]. - The restructuring led to a debt restructuring gain of 2.879 billion in 2024, significantly alleviating financial pressure [3]. Operational Adjustments - The company closed 74 stores in 2024 and completed adjustments on 13 stores, focusing on enhancing the performance of core locations [2]. - The supermarket segment achieved a revenue of 1.839 billion in 2024, a year-on-year increase of 53.06%, despite closing 69 stores [2]. Strategic Initiatives - The introduction of a new management structure and supply chain reforms, including a shift to a transparent pricing model and the establishment of a central kitchen, are expected to further improve operational efficiency [4]. - The company has also engaged in significant procurement from the "Fat Donglai" supermarket, indicating a strategic partnership that enhances its supply chain capabilities [2].