Yonghui Supermarket (601933): Entering into a new stage of in-depth cooperation with Zhongbai, new opportunities for platform development of the company

Yonghui Supermarket (601933): Entering into a new stage of in-depth cooperation with Zhongbai, new opportunities for platform development of the company

Event: The company signed a Memorandum of Cooperation with Zhongbai Group and cancelled part of the tender offer to acquire Zhongbai Group.

Opinion: The cooperation between Yonghui and Zhongbai has entered a new stage, optimizing the management of Zhongbai and increasing the investment income of Yonghui.

The company cancelled the invitation to acquire Zhongbai. At the same time, Yonghui helped Zhongbai to optimize business processes, improve procurement, logistics, human resources, financial management, appointment of general manager, etc. Yonghui formed a deeper management scale for Zhongbai.Cooperation and win-win situation.

We believe that this cooperation will push the cooperation between Yonghui and Zhongbai into a new stage.

Profit gap, the two parties strengthened strategic cooperation and coordinated development, and proposed that the net interest rate of Zhongbai Group be increased to 2 after 3 years.

5% target.

The net interest rate of Zhongbai in 2019Q1-Q3 is 0.

36%, calculated according to the goals of 重庆耍耍网 both parties.

By 2023, Yonghui will get 1 under the current sales scale (about 15 billion US dollars).

120,000 yuan investment income.

The company’s nationwide layout of important areas, the platformization process is moving forward.

From a geographical point of view, Wuhan Zhongbai has established the central region to connect Yonghui’s eastern and western markets. Therefore, after opening cooperation with Zhongbai, it will connect the supply chain system in various regions, and leverage Yonghui’s supply chain across the country.National development map.

At the same time, Yonghui is committed to evolving the company from a retail enterprise to a platform-oriented development of a technology retail service enterprise. The introduction of business management output instead of holding has become an important practical approach for the company’s platform development.

Profit forecast: As a national supermarket leader, the company has unique advantages in operation and management. This deepening of cooperation with Zhongbai will continue to improve the supply chain collaboration and operating efficiency of the company’s various regions.

We expect the company to have a company income of 842 in 19/20/21.

10/1027.

65/1248.

7.9 billion yuan, a growth rate of 19.

42% / 22.

03% / 21.

52%, net profit attributable to mothers22.

87/28.

64/39.

8.8 billion yuan, an annual growth rate of 54.

53% / 25.

22% / 38.

55%, EPS is 0.

24/0.

30/0.

41 yuan, corresponding to 38 for PE.

78/30.

97/22.

43, maintain the “strongly recommended” level.

Risk warning: Store expansion is not up to the expected risk, and industry competition is intensifying.