YONGHUI SUPERSTORES(SH:601933) HTSC·2025-11-04 04:08Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of 5.10 RMB [6]. Core Views - The company is undergoing a transformation with the "Fat Donglai" model, and the effects of operational adjustments are gradually becoming evident. In Q3, the company achieved a revenue of 12.49 billion RMB, a year-on-year decrease of 25.5%, and a net loss attributable to shareholders of 470 million RMB, compared to a net loss of 350 million RMB in the same period last year [1][6]. - The company has accelerated the restructuring of its tail-end stores, with 450 stores opened as of Q3, resulting in a net closure of 102 stores. The proportion of restructured stores has reached 49%, up 26.9 percentage points from the previous quarter, leading to a significant increase in average single-store revenue, which exceeded 24 million RMB, a year-on-year increase of over 30% [2][6]. - The gross profit margin has stopped declining and has begun to recover, with a Q3 gross profit margin of 19.8%, an increase of 0.6 percentage points year-on-year. The company is still in the process of implementing strategies for direct procurement and cost control [3][4]. Summary by Sections Revenue and Profitability - For Q1-Q3, the company reported a total revenue of 42.434 billion RMB, a year-on-year decrease of 22.21%, with a net loss attributable to shareholders of 710 million RMB, compared to a net loss of 80 million RMB in the same period last year [1]. - The company expects profitability to improve as the restructuring of tail-end stores progresses and as more restructured stores reach maturity [1][4]. Cost Management - The report indicates an increase in the expense ratio, with the sales expense ratio rising by 2.7 percentage points to 21.8% and the management expense ratio increasing by 0.3 percentage points to 3.2% [3]. - The company is focusing on enhancing consumer experience and employee incentives, which has led to an increase in related costs [3]. Future Outlook - The company plans to issue no more than 3.114 billion RMB in new shares, with 2.4 billion RMB allocated for the restructuring of 216 stores, 300 million RMB for logistics upgrades, and 400 million RMB for working capital [4]. - The report projects a net profit attributable to shareholders of -1.481 billion RMB for 2025 and 591 million RMB for 2026, with an expected net profit of 1.403 billion RMB in 2027 [5][11].