Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Viewpoints - The company reported a revenue of 18.26 billion yuan in 2024, representing a year-on-year growth of 2.8%. The net profit attributable to the parent company was 130 million yuan, a decline of 3.3% year-on-year, while the net profit excluding non-recurring items was 120 million yuan, an increase of 17.2% [2][4] - In the first quarter of 2025, the company achieved a revenue of 4.94 billion yuan, a year-on-year decline of 4.8%, with a net profit attributable to the parent company of 140 million yuan, down 3.6% year-on-year, and a net profit excluding non-recurring items of 140 million yuan, an increase of 3.9% [2][4] - The company is focusing on high-quality transformation and optimizing its network layout and resource allocation, with a total of 1,095 stores as of the first quarter of 2025, including 945 direct-operated stores and 150 franchise stores [11] Summary by Relevant Sections Financial Performance - In 2024, the company achieved a gross profit margin of 23.3%, a decrease of 0.6 percentage points year-on-year, primarily due to operational optimization and product mix adjustments [11] - The company’s operating expenses for 2024 were 18.5% for sales, 2.0% for management, and 1.4% for financial expenses, reflecting a slight decrease in expense ratios due to improved operational efficiency [11] Strategic Initiatives - The company is actively enhancing its supply chain and has completed the second phase of the Huai Bei comprehensive industrial park project, which is expected to improve logistics efficiency [11] - The company is also focusing on product development, with self-owned and customized products accounting for 13.63% of total sales in 2024, showing a steady increase [11] Future Outlook - The company aims to transition from scale retail to quality retail, with plans to optimize store layouts and ensure high-quality openings for new stores [11] - Earnings per share (EPS) are projected to reach 0.32 yuan, 0.40 yuan, and 0.49 yuan for the years 2025, 2026, and 2027 respectively [11]

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a revenue of 18.26 billion yuan in 2024, representing a year-on-year growth of 2.8%. The net profit attributable to the parent company was 130 million yuan, a decline of 3.3% year-on-year, while the net profit excluding non-recurring items was 120 million yuan, an increase of 17.2% [2][6]. - In the first quarter of 2025, the company achieved a revenue of 4.94 billion yuan, a year-on-year decline of 4.8%, with a net profit attributable to the parent company of 140 million yuan, down 3.6% year-on-year, and a net profit excluding non-recurring items of 140 million yuan, up 3.9% [2][6]. - The company is focusing on high-quality transformation and optimizing its network layout and resource allocation, with a total of 1,095 stores as of the first quarter of 2025, including 945 direct-operated stores and 150 franchise stores [12][12]. - The company is enhancing its supply chain strategy, with a gross margin of 24.3% in the first quarter of 2025, reflecting a year-on-year increase of 0.2 percentage points [12][12]. - The company aims to shift from scale retail to quality retail, ensuring the quality of new store openings and enhancing product competitiveness through optimized procurement strategies [12][12]. Summary by Sections Financial Performance - In 2024, the company achieved total revenue of 18.26 billion yuan, with a gross profit margin of 23.3%, a decrease of 0.6 percentage points year-on-year. The net profit attributable to the parent company was 130 million yuan, down 3.3% year-on-year [2][12]. - For the first quarter of 2025, the company reported a revenue of 4.94 billion yuan, with a gross margin of 24.3%, showing signs of stabilization [12][12]. Store Operations - As of the first quarter of 2025, the company had 1,095 stores, including various formats such as community fresh food supermarkets and discount stores. The company is actively optimizing its store network and resource allocation [12][12]. - The company has closed 46 direct-operated stores since the end of 2023 to improve operational efficiency and profitability [12][12]. Supply Chain and Product Strategy - The company is strengthening its supply chain, with a focus on enhancing logistics efficiency and product development capabilities. The proportion of self-owned and customized products reached 13.63% in 2024, a steady increase of 0.1 percentage points year-on-year [12][12]. - The company is implementing a strategy of "product optimization, reasonable structure, and extreme cost performance" to enhance overall product competitiveness [12][12].

Core Viewpoint - The transformation of Jiajiayue Group represents a significant shift in the retail industry, focusing on consumer-centric strategies and the use of "small data" to enhance shopping experiences and operational efficiency [1][9]. Group 1: Company Transformation - Jiajiayue has evolved from a small supermarket in Weihai to a comprehensive retail group with a focus on supply chain and multi-format operations, having gone public in 2016 [1]. - The company is undergoing a transformation from a "product-centric" to a "consumer-centric" approach, emphasizing understanding consumer preferences over merely competing on price [2][4]. - The introduction of a new store layout and various shopping scenarios aims to create a more enjoyable shopping experience for consumers [1][2]. Group 2: Data Utilization - Jiajiayue utilizes "small data" to analyze consumer behavior, creating a detailed database that allows stores to understand the demographics and preferences of customers within a 3-kilometer radius [3]. - The company has reported a 3% increase in store efficiency and a 2-day acceleration in inventory turnover due to enhanced data analytics [3]. Group 3: Supply Chain and Product Development - The procurement team at Jiajiayue has transitioned to "product officers," focusing on designing solutions that meet consumer needs rather than just negotiating prices [4][5]. - The company aims to balance quality and price by optimizing the supply chain, reducing costs through direct sourcing and customized production [5][7]. - Jiajiayue's self-branded and customized products accounted for 13.63% of sales in 2024, reflecting a shift towards "manufacturing retail" to enhance competitive differentiation [7]. Group 4: Market Opportunities - The ongoing international trade tensions have provided Jiajiayue with opportunities to expand its domestic market by introducing foreign products, with over 500 tons of foreign goods already launched [8]. - The company has engaged with over 200 foreign trade enterprises to facilitate the introduction of diverse products into the domestic market, leveraging its extensive store network [8]. Group 5: Industry Implications - Jiajiayue's transformation highlights a broader trend in the Chinese retail industry, where understanding consumer needs through "small data" is essential for driving growth in a competitive landscape [9].