Yonghui Supermarket (601933) Interim Review: Expense Control Control During Continual Expansion of Stores in Decentralized Theater
Event 杭州夜生活网 description The company released its 2019 semi-annual report on August 29, and the company achieved total operating revenue of 411 in the first half of the year.
76 ppm, an increase of 19 in ten years.
71%, consolidated net profit attributable to shareholders of listed companies.
$ 6.9 billion, an increase of 46 per year.
Event review exhibition shop continues, decentralization of the top ten war zones.
In the first half of 2019, 84 supermarket stores (including the original Top 100 stores in Guangdong, excluding Yonghui mini stores, Yonghui Life, Super Species) were added, covering an area of 50.
80,000 square meters, of which 25 new stores opened in Q2 alone, an increase of 4 earlier Q1, the speed up of the exhibition; a total of 791 stores have opened, covering 24 provinces and cities nationwide, the same store continues to grow3.
At the same time, the company tested the MINI format. In the first half of the year, the MII store achieved a total of 50 cities in 19 provinces and opened 398 stores with an average area of 488 square meters and a total operating income of 5.
500 million US dollars, more than 300 new quarters opened last quarter; supermarket home business has covered 109 cities in 22 provinces, a total of 518 stores provide home services for consumers, achieving 13.
3 trillion, with an average monthly growth rate of 7.
1%, online sales accounted for 3%.
4%, an increase of 111% a year.
Among them, JD.com connected 407 supermarkets to the company, adding 112.
In the first half of 2019, the company decentralized the top ten theaters to expand its business. Each theater has a balanced development trend. The revenue ratio of the first to fourth theaters has decreased compared to last year, and has been reduced by -1.
77 points / -0.
58pct / -0.
16pct / -0.
75pct, but the overall revenue of the first four districts accounted for more than 60%; the proportion of revenue from the fifth to tenth war zones increased significantly, increasing by 0 respectively.
85pct, the biggest improvement is in Guangdong, which is 0.
85pct, followed by 0 in the Sichuan Theater.
Of the top ten theaters, the largest increase in revenues came from the Guangdong region, with an annual increase of 74.
83%, the region may be affected by the company’s multiple investment contracts with Baijia and Yonghui in October 18; followed by 57 in Shaanxi and Ningxia.
75%, the district continued to maintain a growth rate of more than 50%, mainly benefiting from the company’s channel advantages in the sinking market.
The initial gross profit margin of department stores decreased, and the cost control during the period was obvious.
In the first half of 2019, the company’s main business revenue increased by 19 per year.
21%, gross margin 16.
39%, a decrease of 1 from the same period last year.
01pct, in which the gross profit margin of raw, fresh and processed products decreased by 1.
09pct to 13.
92%, food supplies gross margin decreased by -0.
98 points to 18.
By region, except for seven and ten regions (+0.
33pct, + 3.
68pct) In addition to the highest gross profit margin growth, the gross profit margins of the remaining 8 theaters have fallen to varying degrees, of which the Fujian region has the most obvious decline in gross profit margin.
93 points to 16.
Affected by the economic environment and the high base last year, the company’s larger gross profit department store clothing business, meanwhile, the CPI continued to rise and new store development led to a corresponding increase in costs.
During the first half of the year, the company’s expense ratio was 18.
22%, a decrease of 1 over the same period last year.
86pct, the effectiveness of open source and cost reduction control has been remarkable.
The sales expenses increase by 14 every year.
32%, but the sales expense ratio has dropped by 0 every year.
72pct, through the increase in the number of stores, the corresponding increase in daily operating expenses such as rent, utilities, manpower, etc .; management costs decreased by 21.
25% was mainly due to the decrease in the allocation of incentive fees and system development service fees in this period compared with the previous period; the financial expenses increased by 232%, mainly due to the increase in bank expenses and interest expenses in the current period.
Commodity moats have further deepened, and the omnichannel platform has continued to be optimized.
In the first half of 2019, the company’s logistics centers have covered 18 provinces and cities across the country with a total operating area of about 450,000 square meters. The logistics centers are divided according to temperature zones, of which 17 are room temperature distribution centers (including transit warehouses) and 9 are fixed temperature distribution centers; The first half of the distribution amount of 230.
In the first half of the year, the company was selling 44 of its own brands, with 1022 SKUs and a C-end opening of 7.
8.6 billion, accounting for 2%.
1%, of which 30% is fresh.
8%; B-terminal carbonic acid 7.
1.4 billion, of which 37% is fresh.
In the technology sector, an omni-channel operational marketing platform was built in the first half of the year to help the company’s strategic development.
The first half of Phaeton 2.
0 is fully landing and application.
The second phase of IHR was implemented at the end of July; the financial sharing system was tested in Guizhou and Sichuan at the end of July; the project to the asset system was tested and implemented at the end of August; the FOT pilot promotion of the logistics OTB project in October;.
Offer to acquire Zhongbai shares to increase Hubei’s market share.
In March this year, the company planned to adopt a tender offer to change the proportion of its shares held by Zhongbai Group directly and indirectly from the current 29.
86% will increase to no more than 40%. If the acquisition is completed, the company will become the largest shareholder of Zhongbai.
As early as 2014, the company had a “strategic cooperation framework agreement” with more than one hundred years. The two parties planned to carry out strategic cooperation in resources, networks, information, logistics and other aspects to jointly expand and strengthen core business.
Through strategic investment in Zhongbai, the company strengthens its strengths and complements each other’s strengths, and conducts in-depth cooperation with Zhongbai in joint procurement, fresh food management, and store management.
At present, the company has developed nearly 800 supermarket chains in 24 provinces and cities including Fujian and Chongqing, with an operating area of more than 6 million square meters. Among them, Chongqing, Fujian, Beijing, Sichuan and other provinces have replaced the company for many years and have a more mature area.Central China and Northwest China are the provinces where the company’s scale is mainly expanding. The company’s layout of Zhongbai focuses on its own development in Hubei Province. At the same time, Hubei is also the junction point connecting East China and Southwest China. The supply chain can form a good synergy.
Through the strategic cooperation with Zhongbai, the company can share the market share of the supermarkets in Hubei and Wuhan, and further promote the in-depth cooperation of the commodity supply chain.
The company has passed the anti-monopoly review by the State Administration of Market Supervision and Administration, and currently requires foreign investment security review and approval.
Investment suggestion The company focuses on the 厦门夜网 main business of the supermarket, decentralizes the top ten war zones, and has made breakthroughs in innovative formats in the core areas. There is a trend of balanced development in each war zone.
We are optimistic about the company’s ability to build a food supply chain based on a smart mid-level platform. It is expected that EPS for 2019-2021 will be 0.
39 yuan, corresponding to the company’s closing price of 9 on August 28.
91 yuan, PE for 2019-2021 is 40.
0X / 30.
6X / 25.
5X, give “overweight” rating.
Presence of risks Macroeconomic growth forecast; New industry-type business speed impacts performance; Short-term error risk of new zone expansion.