YONGHUI SUPERSTORES(SH:601933) CMS·2025-08-21 06:31Investment Rating - The report maintains an "Accumulate" rating for Yonghui Supermarket [1][3]. Core Views - Yonghui Supermarket is undergoing significant adjustments, including store closures and supply chain reforms, leading to fluctuations in revenue and net profit. The company is committed to the "Fat Donglai" strategy, which, combined with support from Fat Donglai and investment from Miniso, is expected to enhance its product offerings in the daily necessities category. The long-term outlook for the company's quality retail strategy is promising [1][7]. Financial Data and Valuation - Total revenue for 2023 is projected at 78,642 million, with a year-on-year decline of 13%. The revenue is expected to decrease further to 67,574 million in 2024, followed by a slight recovery in 2026 and 2027 with projected revenues of 78,680 million and 97,091 million respectively [2][10]. - The company is expected to report a net profit of -1,329 million in 2023, with a forecasted improvement to 727 million by 2026 and 1,521 million by 2027 [2][10]. - The earnings per share (EPS) is projected to be -0.15 in 2023, improving to 0.08 in 2026 and 0.17 in 2027 [2][10]. - The price-to-earnings (PE) ratio is expected to be -33.9 in 2023, improving to 29.7 by 2027 [2][10]. Operational Performance - In the first half of 2025, Yonghui Supermarket reported a revenue of 29,948 million, a decrease of 20.73% year-on-year, and a net profit of -241 million, compared to 275 million in the same period last year. The decline in revenue is attributed to the closure of underperforming stores and the impact of supply chain upgrades [7]. - The company has closed 227 old stores and has signed contracts for 79 new stores that have yet to open. As of the report's end, there are 124 stores undergoing adjustments [7]. - Online sales accounted for 18.33% of total revenue in the first half of 2025, with self-operated home delivery sales reaching 3,140 million [7]. Supply Chain and Product Strategy - Yonghui Supermarket is enhancing its supply chain efficiency by signing contracts with 2,860 suppliers under a direct procurement model, reducing the number of suppliers by approximately 50%. The sourcing ratio for fresh products has increased to over 60% [7]. - The company is also focusing on product innovation, launching customized products such as Yili's fresh milk and redefining its private label strategy to offer high-quality products at competitive prices [7].