“Wanjia Lights” reached a milestone. Since 2020, Yifen has surpassed 3,000 stores nationwide. At the end of 2020, Lai Yifen opened a store in Maqiao Wanda, Minhang, Shanghai, which is the 33rd largest store in the country. Since the launch of the “Wanjia Lights” program in 2017, the company has steadily promoted the “Wanjia Lights” program, covering nearly 300 cities in 28 provinces, autonomous regions, and municipalities directly under the Central Government, including Shanghai, Zhejiang, Jiangsu, Beijing, Tianjin, Anhui, Jiangxi, Chongqing, Guangdong, and Shandong. It directly manages franchise stores in parallel and deepens offline channel layout.
At the end of 2020, the company officially exceeded 1,000 stores in the Jiangsu market, marking the official move of Laiyifen's newly upgraded stores from Shanghai to the whole country. In 2021, the company will focus on offline channel expansion and increase the assessment of input-output ratio. Offline stores will gradually expand outward around Jiangsu, Zhejiang, and Shanghai, focusing on certainty and synergy, and focusing on franchise store development. The increase in the share of franchise stores is expected to have a positive effect on optimizing the company's costs and expenses.
Community retail was laid out online, strategic cooperation was reached with Zhongtong Cloud Warehouse, and online construction was gradually improved. In 2003, the company began construction of an information technology project, and in 2014, it officially proposed an omni-channel strategy to promote the development of online+offline integration. The company and Zhongtong Yuncang will further cooperate in various fields such as the Yuncang network, the joint construction of 10,000 small stores and new retail, OTO business integration, and new media marketing to lay the foundation for sustainable and healthy development and enhance the company's comprehensive strength and profitability. Overall, the cooperation model is divided into: 1.
The company can guide the location selection of offline stores based on data feedback from Zhongtong terminal stores, thereby maximizing time costs and trial and error costs. The company also reduces logistics costs through this. 2. In terms of product cooperation: First, the gift box will be used to further deepen the layout of offline channels using Zhongtong's terminal stores, and then gradually expand the range. Under the guidance of the fresh snack strategy, Laiyifen has completed the online ecosystem Laiyifen app, mini-program, and offline store marketing ports and creativity and formed a closed loop, fully laying out all major e-commerce channels, so that the omni-channel layout can reach the entire network.
Profit forecast and investment suggestions: In 2020, the pandemic had a great impact on the company's channel sales side. At the same time, the company increased investment in information technology construction, promoted brand upgrading and promotion, and increased sales expenses and management expenses during the expansion period. Therefore, we expect revenue for the 20-22 years to be 40.75, 50.36, and 6.133 billion yuan, respectively, net profit of -0.78, 0.58, and 0.7 billion yuan, and EPS at -0.23, 0.17, and 0.21 yuan/share, respectively.
In 2021, the company will focus on offline channel expansion and increase the assessment of input-output ratio. Offline stores will gradually expand outward around the Jiangsu, Zhejiang, and Shanghai regions, focus on certainty and synergy, focus on franchise development, and maintain “recommended” ratings.
Risk warning: Rent and labor costs for direct-run stores have risen sharply, franchise progress has fallen short of expectations, online growth has slowed down, industry competition has intensified, raw material prices have risen, food safety issues, etc.