Yonghui Supermarket (601933): Operation in the first half of 2019 meets expectations and maintains recommendations

Yonghui Supermarket (601933): Operation in the first half of 2019 meets expectations and maintains recommendations


Event summary In the first half of 2019, the company achieved total operating income of 411.

76 ‰, an increase of 19 per year.

71%; realized attributable net profit13.

69 million, up 46 each year.

69%; attributable non-net profit 11.

63 ppm, an increase of 40 per year.


Net cash flow from operating activities in the first half of 2019 was 20.

00 ppm, an increase of 52 over the same period last year.



Our Analysis and Judgment (I) The expansion of scale and the increase in customer unit price promoted the growth of revenue, and the performance improved. In 2019, the main retail industry revenue was 381.

26 ppm, an increase of 61 in ten years.

440,000 yuan, corresponding to YOY19.

21%, accounting for 92% of total revenue.

59%, a total of 93 compared with the same period last year.

98% have high blood pressure; the service industry achieved revenue of 30.

500,000 yuan, contributing 6.

3.5 billion revenue increase, corresponding to year 26.


The increase in revenue was mainly due to the continuous increase in the number of new stores opened by the company and the increase in the unit price of old stores.

The company’s attributable non-net profit in the first half of 2019 was 11.

6.3 billion yuan, an increase of 3 over the same period in 2018.

37 ppm, a substantial increase of 40 per year.

78%, mainly due to the decrease in share-based compensation expenses over the same period last year2.

08 thousand yuan, and get investment income by removing fresh food.

2.6 billion.

Long-term equity investment is mainly affected by Yunchuang’s performance. In the first half of the year, Yonghui based on its shareholding ratio.

60% confirmed that the corresponding part was expected 1.

6.4 billion.

From the perspective of product classification, fresh and processed / food supplies (including clothing) respectively achieved revenues of 179.


250,000 yuan, an increase of 27 compared with the same period last year.


330,000 yuan, corresponding to YOY17.

84% / 20.

45%.Among them, the subdivision of fresh and processed products into the main retail segment was slightly zero.

54 up to 46.

95%; 53 remaining.

05% of the total is contributed by food supplies, and this part of the product also contributed about 55.

88% of the main retail scale increase.

From a regional perspective, the company merged and integrated the original cloud super one and two supermarket business management and re-divided the top ten war zones.

District 1 (Fujian Province) / District 2 (Beijing, Tianjin, Heilongjiang, Liaoning, Jilin) / District 3 (Zhejiang, Jiangsu, Shanghai) / District 4 (Chongqing, Hubei, Hunan) / District 5 (Sichuan)/ District 6 (Guangdong) / District 7 (Hebei, Henan, Shanxi) / District 8 (Anhui, Jiangxi) / District 9 (Guizhou, Yunnan, Guangxi) / District 10 (Shaanxi, Ningxia) achieved revenue of 64.










68 ppm, revenue increase 3.










64 trillion, compared with the same period last year YY5.

56% / 11.

53% / 27.

26% / 11.

66% / 30.

75% / 74.

83% / 19.

03% / 22.

20% / 30.

07% / 57.


Among them, the contribution of the three major regions of the three districts / four districts / fifth districts, the corresponding incremental contribution ratios are 20 respectively.

10% / 12.

29% / 16.85%; the ratio of the revenue of District 1 / District 3 / District 4 to the total revenue is stable at the top three levels, with a total contribution of 51 in the first half.

08%; but the first and fourth zones are slightly 2 respectively.


28 up to 17.

01% / 18.

96%, the proportion of three districts increased by zero.

96 up to 15.


(2) In the first half of 2019, the comprehensive gross profit margin decreased by 0.

57pct; the cost rate improved during the period, and fell by 1 every year.

86pct’s consolidated gross profit margin for the first half of 2019 was 21.

84%, a decrease of 0 from last year.

57 units.

In terms of different industries, the gross profit margins of the retail / service industry were 16 respectively.

39% / 89.

89%, a change of -1 from the same period last year.

01 / + 1.

04 average values, at least a part of which is absolutely absolutely leading the decline in gross profit margin of the main retail business format dragging low overall levels.

From the perspective of retail products, the gross profit margins of fresh and processed / food products (including clothing) are respectively 1.


98 single to 13.

92% / 18.


In terms of different regions, the gross profit margins of the first, second, third, fourth, fifth, sixth, seventh, eighth, ninth, and tenth districts were achieved.

32% / 15.

17% / 15.

95% / 17.

37% / 16.

93% / 17.

28% / 15.

42% / 15.

69% / 16.

55% / 18.

At 57%, the gross profit levels of District 4 (Chongqing, Hubei, Hunan), District 6 (Guangdong), and District 10 (Shaanxi) are at the leading low level. Among them, except for District 7 (Jiyujin), which increased by 0 compared with the same period last year.

33 single, 10 districts (Shaanxi) gross margin increased by 3 compared with the same period last year.

Outside 68 grades, the gross margin extension in other regions decreased; District 1 (Fujian) decreased by 2 compared with the same period last year.

93 averages, the largest decline in gross profit margin.

In the first half of 2019, the company’s periodical comprehensive expenses were 18.

22%, a decrease of 1.
86 units.
The sales / management / financial expense ratios for the first half of 2019 were 15 respectively.

19% / 2.

66% / 0.

37%, corresponding to 0 interruptions in the same period last year.



24 units.

The increase in selling expenses was mainly due to the increase in expenses for newly opened stores in the current period.

The decrease in management expenses was mainly due to the reporting and decentralized incentive expenses. The salary of management personnel and system development service fees decreased compared with the previous period.

Among them, equity incentive expenses decreased by 2 as compared with the same period last year.

08,800 yuan, employee compensation decreased by 5 compared with the same period last year.

14 trillion, the system development service fee decreased by 0 compared with the same period last year.

4.7 billion.

The increase in total financial expenses was due to the increase in debt refund costs caused by the company’s opening of stores and foreign investment, of which index expenditure increased by 1 compared with the same period of the previous year.

09 million yuan.

(III) The store expansion strategy is steadily advancing, and the collaborative development of the business of the large science and technology sector promotes drainage and improves efficiency. In the first half of 2019, the company opened 84 new supermarkets (including the original Top 100 Guangdong stores, excluding Yonghui mini stores, Yonghui Life, SuperType; a total of 791 stores have been opened, covering 24 provinces and municipalities across the country, to achieve full coverage of first to sixth-tier cities; during the reporting period, 72 new stores were signed, and 249 open stores have gradually been signed.

The company has been steadily advancing its store growth strategy. Although newly opened stores have increased daily operating expenses such as manpower, rent, utilities, etc., due to the continuous increase in the number of newly opened stores and the increase in customer flow from old stores, the company’s operating income has also steadily increased.
We expect that the company will continue to promote the continued expansion of stores under the line in the future, consolidating its national channel advantage.

In the first half of 2019, the company is committed to building an omni-channel operation marketing platform to help the company’s strategic development.

First, promote the development of C-side applications that support the home business, expand new channels to acquire customers: complete community group purchases, and implement the development and promotion of Yonghui Supermarket mini programs.

The emerging community group purchases are convenient for picking up goods, and the advantage of cheap products has attracted the participation of community consumers.

At present, Yonghui Supermarket has promoted community group purchases in more than 300 stores, with a cumulative user base of more than 70,000 and valid orders over 100,000.

In the future, the growth of the community group buying segment is expected.

Secondly, to promote the continuous construction and optimization of the platform supporting the home system, and improve the efficiency of operation and management: It is reported that the company has improved and promoted the application of store mobile management cloud POS system and code scanning and purchase, and also promoted the development and implementation of the supply chain in China and Taiwan.The promotion of the back-office applications has provided continuous business service support for the company’s operations.

Third, comprehensively promote the application of data intelligent innovation: the company trials warehouse-side sales forecasting applications, and completes application promotion trials based on 南京桑拿网 membership avatars and satellite warehouse smart fulfillment applications. These applications will help in storage, marketing, and fulfillment in the future.The company saves resources and ensures efficient business operations.

(IV) Testing the water-innovative MINI store, Yunjin’s performance is favorable for the company’s water-innovation MINI business in the first half of 2019. In the first half of the year, the MINI store achieved coverage in 19 cities and 50 cities, with a total of 398 stores and an average area of 488 square meters, Total operating income 5.

500 million.

Yonghui Supermarket’s MINI Store is another shift of Yonghui Supermarket’s entry into the new retail fresh produce track.

MINI stores are based on the needs of the community. With the help of the company’s efficient supply chain and the help of thoughtful home business, MINI stores can be expected to develop in the future.

In the first half of 2019, the company’s cloud gold business continued to develop, and the cumulative number of registered customers has reached 23.

10,000, a long-term cumulative payment of 146.

30,000 yuan, loan balance 27.

600 million, non-performing rate 0.

59%, the loan balance grows an average of 79% each year, operating income1.

07,000 yuan, an increase of 181% over last year.

The cloud gold segment is a new financial business segment of Yonghui Supermarket in recent years. The cloud gold business can increase the fundraising channels for the company, broaden the source of profits, and develop rapidly.


Investment suggestion: The number of newly opened stores of the company has increased significantly. While expanding the scale of offline stores, it has continued to upgrade its format. The innovative format of MINI stores has developed well.
At the same time, science and technology enable the optimization of inventory management, the opening of sales channels, and rich marketing methods. Technology has laid a good foundation for the company’s future growth.

In addition, the company’s Yunjin format has developed well.
We are generally optimistic about the growth space of future scale and performance.

In the first half of 2019, the company’s main operating indicators are obviously better. Combining with the company’s return to its roots and the strategic goal of energy saving and efficiency improvement, it is expected that the company will achieve revenue of 872 in 2019/2020/2021.



810,000 yuan, net profit attributable to the parent company 24.



30 trillion, corresponding to PS1.



78 times, corresponding to PE53 / 45/38 times, maintaining the “recommended level”.


Risk reminders: The impact of online channels on offline physical business; the risk of store expansion less than expected; and the risk of increased industry competition.