Yonghui supermarket is a national leading fresh supermarket, which is currently positioned as an omni-channel retail platform. The company's business is divided into four categories: offline supermarket, supply chain, new retail and finance. Food products and fresh food are the two major business sectors. The company continues to explore a variety of business formats, including red standard stores, green standard stores (Bravo), Yonghui mini, Super species, Yonghui Life, warehousing member stores, etc. Yonghui supermarket opened its first "agricultural reform supermarket" in Fujian in 2000. at present, it has covered 29 provinces and opened more than 1000 stores.
The competition in the supermarket industry is relatively sufficient, and the traditional supermarkets must carry out pattern optimization and integration of business forms. Fresh drainage is an important logic, at the same time, supermarkets need to take the initiative to carry out omni-channel sales and develop O2O business. The epidemic catalyses the vigorous development of real-time retail, consumption upgrading promotes the development of near-field e-commerce, and offline supermarkets are impacted by various kinds of new business type, such as e-commerce, community group buying, real-time retail and so on. However, we believe that there is still a fixed basic disk in the offline format, which is expected to be integrated with the new retail format. Through the digital transformation of all channels, the positioning of the supermarket will be more accurate and refined to meet the subdivision needs of consumers.
The supply chain of Yonghui supermarket is its core competitiveness, which shows that the company binds the supply chain to the upper, middle and lower reaches of the controller. The company implements classified management of food supplies, streamlines SKU, works with suppliers to strengthen high-quality brands, adopts "direct marketing + direct picking" mode for fresh food, forms a "agricultural super docking" model, does a good job in quality control from the source and reduces procurement costs. The company continues to launch its own brand to improve profit margins, continue to establish warehouse-end operation and distribution management standards, and improve distribution capacity.
Reform is the driving force for the sustainable development of the company. Yonghui supermarket continues to reform in the fields of digitization, business format, organizational structure and so on. The company continues to try to adjust new business type, in the emerging format for layout. Through the establishment of digital platform, the construction of digital supply chain, the realization of digital management, the independent establishment of China and Taiwan, the introduction of digital talents and other measures to actively promote digital reform. At the same time, the company continues to adjust the organizational structure to adapt to the external environment, in response to the new retail impact, the organizational structure is changed to 23 provinces and regions, which are directly managed by the headquarters platform and the provincial general manager. In the future, in the continuous change, Yonghui is expected to find the path of growth again.
Profit forecast and valuation: the company is expected to have a net profit of 2.11 trillion yuan, covering for the first time, and given a "recommended" rating.
Risk tips: loss reduction is less than expected, the number of stores is less than expected, the recovery of passenger flow is not as expected, and the format transformation is not as expected.