Jingu Finance News | Soochow Securities released a research report stating that on September 23, Miniso (09896) announced its plan to acquire 29.4% of Yonghui Superstores' shares for 6.27 billion yuan in cash. After the transaction is completed, Miniso will become Yonghui Superstores' largest shareholder.
The bank stated that in the first half of 2024, Yonghui Superstores achieved revenue of 37.8 billion yuan, a year-on-year decrease of 10.1%; net income attributable to the parent company was 0.275 billion yuan, a year-on-year decrease of 26.3%. In the first half of 2024, Yonghui had 943 stores nationwide, a decrease of 57 stores compared to the beginning of the year, mainly due to the company's optimization of store structure. According to the CCFA China Supermarket Top 100 list, in 2023, Yonghui Superstores ranked as the second highest chain supermarket in terms of sales in China, second only to Walmart. With the recovery from the pandemic and the impact of community group buying, the overall operating situation of the supermarket industry is improving. The bank believes that the overall business efficiency of China's offline retail industry is not yet high, with room for improvement in store operation, supply chain efficiency, and enhancement of self-branded products. The industry concentration is relatively low, and improvements in the future outlook are expected. Previously, Yonghui Superstores had no controlling shareholder. After Miniso becomes Yonghui's largest shareholder, it is expected to help Yonghui improve management and operational efficiency by leveraging its own supply chain management capabilities.
The bank adjusted the investment income according to Yonghui Superstores' wind consistent forecast net income. Considering recent operations, Yonghui's profit, and changes in the company's capital structure, the bank adjusted the company's adjusted net income attributable to the parent company for 2024 to 2026 from 2.81/3.37/3.94 billion yuan to 2.8/3.37/3.9 billion yuan, representing a year-on-year increase of +19%/+20%/+16%. This corresponds to a P/E ratio of 13/11/10 times the closing price of the Hong Kong stock market on September 27. The bank maintains a "buy" rating.
