YONGHUI SUPERSTORES(SH:601933) KAIYUAN SECURITIES·2025-05-02 00:23Investment Rating - The investment rating for Yonghui Supermarket is "Buy" (maintained) [1] Core Views - The company has experienced significant pressure on its operating performance due to store renovations, with a reported revenue of 67.574 billion yuan in 2024, down 14.1% year-on-year, and a net profit attributable to shareholders of -1.465 billion yuan [4] - In Q1 2025, the company achieved a revenue of 17.479 billion yuan, a decrease of 19.3%, but a net profit of 148 million yuan, indicating a significant decline of 80% [4] - The company is transitioning towards quality retail, with 41 out of 47 renovated stores achieving stable profitability, and plans to accelerate this transformation [6] Financial Performance Summary - In 2024, the retail and service sectors generated revenues of 63.768 billion yuan and 3.806 billion yuan, respectively, reflecting declines of 13.5% and 22.8% year-on-year [5] - The company’s gross margin for 2024 was 20.5%, down 0.8 percentage points, primarily due to proactive pricing strategies during the optimization of product structure and procurement [5] - The projected net profits for 2025-2027 are -738 million yuan, 410 million yuan, and 1.195 billion yuan, respectively, with corresponding EPS of -0.08, 0.05, and 0.13 yuan [4][8] Store Renovation and Strategy - The company aims to focus on core suppliers and major products, with a target of developing 100 billion-yuan products, while avoiding arbitrary supplier changes [6] - By the end of March 2025, the company had renovated 47 stores, with expectations to exceed 124 renovated stores by June 2025 and reach 300 by the Lunar New Year in 2026 [6]