Yonghui Supermarket (601933) Company’s First Coverage Report: Fresh Supermarket Leads Steady Expansion To Store to Home Consolidate Main Business Moat

Yonghui Supermarket (601933) Company’s First Coverage Report: Fresh Supermarket Leads Steady Expansion “To Store to Home” Consolidate Main Business Moat

The leading national fresh food supermarkets with outstanding core competitiveness covered the “Buy” rating for the first time. Yonghui Supermarkets has a national food industry leader featuring fresh food management. The expansion of its stores in other places has achieved significant results.

We believe that the strong defense of fresh products against e-commerce shocks is an indispensable element for future supermarket competition.

The company has established competition barriers in the fresh food supply chain. In the future, the focus of Yunchao’s main business will continue to accelerate channel integration and expansion, merge mini-shops and home-based innovative retail formats, and further strengthen its core competitiveness.

We estimate the company’s net profit attributable to its parent to be 21 in 2019-2021.

51/28.

33/36.

810,000 yuan, the corresponding EPS is 0.

22/0.

30/0.

38 yuan, currently expected to correspond to PE 34/26/20 times, covering for the first time, given a “buy” rating.

Under the consumption upgrade, the fresh food market 都市夜网 has a bright future, and the market share of the leading supermarkets is expected to increase. The rapid development of online e-commerce has brought conflicts to the traditional offline retail industry, but the fresh food industry is difficult to maintain, has long circulation and high losses.Such characteristics naturally constitute defense barriers to penetration of e-commerce, expand rigid consumption and drainage effects, and have gradually become an important layout category for supermarket companies to compete.

At present, the circulation channel of the fresh produce industry is still dominated by traditional farmer’s markets. In comparison, supermarket channels are more convenient, experience, and quality assurance.

In the future, in the effort to break through regional consumption upgrades and “agricultural reforms,” 武汉夜生活网 leading supermarket companies rely on the advantages of the supply chain to manage fresh produce, realize the upgrading and replacement of the farmer’s market, and gain the double promotion of supermarket channel expansion and leading concentration.

Supermarket leading fresh food supply chain has obvious advantages. The company has established a new format to create “integration from store to home” and has been cultivating fresh food operation for nearly 20 years. It has a high proportion of direct mining mode, a strong cold chain storage system and an optimized organizational system.Competitive advantages have been built in the efficiency of supply chain and store operations.

Undoubtedly, relying on the fresh and differentiated advantages, the company continued to promote the expansion of stores and complete the national layout, and the advantages of scale began to appear.

In addition to the main business of traditional stores, facing the challenges of emerging formats such as community freshness, the company has launched the mini format to sink the community and carry it home business. The precision card slot community retail track will effectively defend the competition format against the market owner.Shock shunting of the industry.

Although the short-term internal innovation format may have an impact on performance, in the long run, the establishment of “store-to-home integration” is still of strategic significance to consolidate the company’s core competitiveness.

Risk warning: E-commerce shocks intensify, store expansion and expansion, and new business developments are less than expected.