Better Life(002251) 信达证券·2025-04-22 08:23Investment 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. 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 15 investors, alleviating financial pressure and enhancing operational capabilities, which is expected to continue improving the company's performance [3][4] - The company has made significant adjustments to its supply chain and operational model, including the introduction of a transparent pricing model and the establishment of a central kitchen to enhance product offerings [4] 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, reflecting a 488.44% increase [1] - The "Fat Transformation" strategy has led to remarkable sales growth in adjusted stores, with some stores experiencing sales increases of over 300% during the Spring Festival [2] Operational Adjustments - The company closed 74 underperforming stores in 2024 and completed adjustments in 13 stores, focusing on core strengths and improving single-store productivity [2] - The supermarket segment achieved a revenue of 1.839 billion in 2024, a significant increase of 53.06% year-on-year, despite closing 69 stores [2] Strategic Initiatives - The restructuring process has confirmed a debt restructuring gain of 2.879 billion, which has positively impacted the company's financial health [3] - The introduction of a rotating presidency management system and organizational restructuring aims to enhance service quality and operational efficiency [4]