Yonghui Supermarket (601933): Expansion and integration of same store expansion is expected to promote continued high revenue 北京夜网 growth
Event: On August 28, the company released its 2019 Interim Report and achieved revenue of 411.
7.6 billion / + 19.
71%, net profit attributable to mother 13.
69 ppm / +46.
69%, net profit of non-attributed mother 11.
63 ppm / +40.
78%, operating cash flow 20.
00 ppm / + 52.
87%; in the second quarter alone, 2019Q2 achieved revenue of 189.
40 ppm / 21.
2%, net profit attributable to mother 2.
4.5 billion / +32.
2%, net of non-attributed net profit / + 102.
48%, performance is in line with expectations.
Showroom promotion, same-store expectation, two-pronged approach from the store to the home, revenue continued to increase.
According to the report, the company launched 46 cloud superstores, including 25 BRAVO stores in the second quarter of 2019; Guangzhou Top 100 was consolidated in 重庆耍耍网 May, and 38 Bravo stores and 17 mini stores were merged. By the end of the reporting period, the companyThe number of stores reached 791, including 398 mini stores, including 249 unopened stores, with an area of 1.83 million square meters; the same store grew by 3 each year.
1%, preliminary expectation, to jointly promote the increase in revenue from the previous quarter, the main industry revenue is expected to grow by about 24.
The report summarizes that the company ‘s store-to-home business has a two-pronged approach. In addition to actively promoting the construction of mini-stores, the supermarket home-to-home business has covered 109 cities in 22 provinces and autonomous regions.
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 and added 112.
On the profit side, after the calculation, the company’s main business net profit (including mini stores) in the second quarter of 2019 achieved a profit increase of about 10%, in line with expectations; in the second quarter of the big super single, about the net profit attributable to mother.
80,000 yuan, an annual increase of 24.
4%, steady growth.
Affected by subjective adjustments, the decrease in gross profit margin decreased.
The average value is reported, and the company’s gross profit margin is ten years -0.
6pct to 21.
8%, mainly due to the subjective adjustment of the company: 1) In the first half of 2018, due to various factors such as the prominent scale advantage, the company’s gross profit margin increased significantly from 2016-2017 and reached a high base; the reported scale,The company promoted scale expansion and profit terminal, so quarterly half-year reductions occurred; 2) Product structure adjustment. In order to comply with the development trend of hypermarkets and supermarket industries, the company proactively changed the layout of department stores such as clothing. Because it is a high gross margin business, it is short-lived.Some influence; 3) Active adjustment under the inflation environment.
The company is about to completely convert the rising cost of fresh produce into a graft terminal, but the gross profit margin has improved due to the promotion of revenue.
During the period, the cost rate dropped, and the high-growth supermarket leader integrated and empowered. It is recommended.
The report summarizes that the conversion innovation business report and equity incentive expenses decreased, and the company’s period expense ratio increased and decreased: the sales expense ratio increased and decreased 0.
7pct to 15.
2%, the management expense rate drops by 1 every year.
4 points to 2.
7%, the financial expense ratio increased by 0 in ten years.
2pct to 0.
As an advantage leader of the Johnson & Johnson fresh supply chain, under the current environment, the company is striving to expand its scale, from B to C. (Cloud merchants contribute revenue)
1.4 billion), combined development of large and small stores (mini store reported scale contributed revenue5.
500 million, in line with expectations), integrated empowerment, and maintain recommendations.
Investment suggestion: The company starts with a differentiated positioning of fresh produce. The supply chain of more than 20 years of intensive cultivation has become the fourth leader in supermarkets.
At present, the company is seizing the advantages of dual-line integration in the industry, accelerating the advantages of concentration, and promoting the speed of Yunchao’s exhibition shops. It also follows the trend, promotes the integration of the same industry, and advances towards platformization.
In 18 years, affected by various factors such as the distribution of incentive fees, innovative business, and consumer pressure in the second half of the year, the company ‘s expense ratio was at an all-time high. At the end of 18 and early 19 years, fresh food and Yunchuang successively promoted the advancement of light equipment.Merger and merger, the manager’s division of labor is clear or cloud super efficiency is improved; focusing on the development of small stores, if its replicability is verified, it may enrich the home business, and promote a significant increase in the market share of a single district.
It is expected that the compound growth rate of cloud superstores will be 25% from 2019 to 2020. Taking into account the growth of scarce leaders and the flexible premium of the internal and external integration and empowerment period, the corresponding EPS for 19-20 is expected to be 0.
26 yuan / share, 0.
32 yuan / share, 6-month target price of 13 yuan, maintain “Buy-A rating”.
Risk reminders: 1) intensified regional competition; 2) new-type development of lower-tier cities exceeds expectations; 3) small-store business development is lower than expected; 7) significant downside risks to CPI .