YONGHUI SUPERSTORES(601933) 海通证券·2024-06-06 01:01Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The company has undergone a significant transformation with the opening of its first adjusted store in Zhengzhou, which is expected to enhance operational efficiency and customer satisfaction through comprehensive adjustments in product structure, quality, pricing, store layout, and employee treatment [4] - The company reported a revenue of 78.642 billion yuan in 2023, a year-on-year decline of 12.71%, but achieved a net loss of 1.329 billion yuan, which represents a 51.90% reduction in losses compared to the previous year [5] - The company plans to continue optimizing its store operations and supply chain, with a focus on digital transformation and cost reduction to improve overall efficiency [5] Financial Summary - The company's revenue for 2023 was 78.642 billion yuan, with a projected revenue of 72.603 billion yuan for 2024, indicating a year-on-year decline of 7.7% [6] - The net profit for 2023 was a loss of 1.329 billion yuan, with projections of a profit of 91 million yuan in 2024, reflecting a significant turnaround with a growth rate of 106.9% [7] - The gross margin improved to 21.2% in 2023, with expectations to reach 22.2% by 2026 [9] Store Operations - The company opened 12 new stores and closed 45 in 2023, with plans to open 3 new stores in the first quarter of 2024, indicating a strategic focus on optimizing store performance [5] - The adjustments in the Zhengzhou store include retaining top brands, optimizing procurement channels, and enhancing employee compensation and working conditions to improve service quality [4] Valuation - The current market capitalization corresponds to a 2024 price-to-earnings (PE) ratio of 262 times and a price-to-sales (PS) ratio of 0.33 times, with a recommended PS valuation range of 0.4-0.5 times, suggesting a reasonable market value between 29 billion yuan and 36.3 billion yuan [7]