Yonghui Supermarket (601933): High performance growth is in line with expectations

Yonghui Supermarket (601933): High performance growth is in line with expectations

Investment highlights: The company announced the 2019 semi-annual results report, which is in line with market expectations: (1) 2019H1 is expected to achieve revenue of 411.

7.3 billion, an annual increase of 19.


Realize net profit attributable to mother 13.

54 ppm, an increase of 45 in ten years.


Realize deducted non-attribution net profit10.

79 trillion, an increase of 30 in ten years.


Non-recurring profit or loss is 2.

7.5 billion US dollars, mainly in 19Q1 color fresh food investment income and 19Q2 Wanda dividends, wealth management income and government subsidies.

(2) Revenue of 189 in the second quarter 杭州夜网 of 2019.

3.7 billion, an annual increase of 21.


Realize net profit attributable to mother 2.

30 ppm, an increase of 24 in ten years.


2019H1 revenue grew by 19 in ten years.

70%, a growth rate of 1 higher than 2019Q1.

22pct, mainly: (1) The number of newly opened stores has continued to increase.

(2) The flow of customers in old stores increased, achieving steady growth.

The net profit attributable to mothers in 2019H1 is increasing by 45 per year.

02%, a growth rate of 5 compared to 2019Q1.

The 26 points are mainly due to: (1) the increase in external equity investment and domestic investment funds, increased short-term debt, and increased interest expenses.

(2) 2019H1 confirms the distribution of incentive costs1.

US $ 3.6 billion, associated companies Yunchuang, Caishi Fresh and Shanghai 成都桑拿网 Vegetable Yonghui’s investment fell 2.

170,000 yuan, the investment income is recognized as a result of stripped fresh food.

2.6 billion.

Focus on Yunchao business, develop innovative formats such as mini stores and community stores, and consolidate the advantages of the country’s channels.

(1) Complete major strategic adjustments, smooth the governance mechanism and business development system, improve operational efficiency significantly, and maintain rapid expansion in scale.

At present, the company has more than 730 Yunchao stores, covering 24 provinces and municipalities across the country, and plans to open 150 new Yunchao stores in 2019.

(2) Mini stores and large stores use the “mother-and-child store” model to expand consumption scenarios, establish traffic fences, learn about consumption stickiness, and realize the intensive exhibition of Yonghui brand stores.

As of the end of June, the number of mini stores was nearly 400, and the speed of exhibition in the second quarter was significantly faster than that in the first quarter. Among them, 93 new stores opened in 19Q1 and nearly 300 opened in 19Q2.

Maintain profit forecast and maintain “Buy” rating.

The company has the advantages of fresh produce, establishes a global fresh produce supply chain system and a nationwide logistics system, and accelerates national expansion through mergers and acquisitions integration.

Since the end of 2018, it has actively deployed new formats such as mini stores and community stores, and its market share has gradually increased.

The speed of the 2019Q2 exhibition store accelerated, and the endogenous growth accelerated. The 2019H1 Yunchao’s high-performance growth was in line with market expectations.

It is expected that the company’s net profit attributable to its parent in 2019-2021 will be 24.39/32.


76 trillion, corresponding to EPS are 0.



45 yuan, corresponding to the current expected PE is 38/28/21 times, maintain “Buy” rating.

Risk reminder: terminal demand declines, exhibition stores are less than expected, emerging formats expand, and costs increase too quickly.