Yonghui Supermarket (601933): Proposed to establish a global consumer goods supply chain service platform to strengthen the advantages of the supply chain
Company status: Yonghui Supermarket announced that it plans to establish a 1223 international supply chain management company with Fujian Provincial Communications Group, Mintian Group, Jardine Group and Mr. Xie Xiangzhen to create an S2B global consumer goods supply chain service platform, which will sequentially replace all partiesThe integration and sharing of resources is expected to further strengthen Yonghui’s global supply chain system.
Comment 1. It is proposed to establish a supply chain management service platform to promote the optimization of the supply chain system and the integration of resources.
1) Transaction details: Yonghui Supermarket intends to establish a supply chain management joint venture company with a registered capital of 1 billion yuan, of which Yonghui Supermarket holds 40% of the shares, Transportation Group 15%, Mintian Group 15%, Jardine Group 10%, Xie XiangMr. Zhen holds 20% of the shares and is paid in cash.
In terms of management structure, the joint venture company plans to set up 7 seats on the board of directors, and Yonghui Supermarket occupies 2 seats; 2) Impact on the company: Among the joint venture parties, Jardine Group indirectly holds Yonghui Supermarket 19 through its subsidiary Milk Co.
With 99% of the shares, Milk Co., Ltd. is an Asian retail group. It owns supermarkets, convenience stores, beauty stores, household goods stores and other retail formats, and has rich resources in the global supply chain.
The purpose of this joint venture is to integrate and share the resources of all parties and gradually strengthen Yonghui’s global supply chain system.
2. The company’s fundamentals are stable and improving, and its profitability has reached an inflection point.
From the end of 2018 to the beginning of 2019, the company completed a series of organizational structure upgrades, including the merger and consolidation of Yunchao One and Two, increasing the proportion of total power and responsibility in provinces and regions, the construction of large supply chains, the large-scale technology division, and the integration of mid- and back-office to improve efficiency.It lies in focusing on core resources to strengthen Yunchao’s main business and ultimately improve operating efficiency.
We believe that Yonghui Supermarket’s current fundamental indicators are stable and good, confirming that the performance is on the rise, and then gradually the proportion of independent brands is gradually increased, the scale effect is strengthened, and the cost control under the smart China-Taiwan construction is significantly effective, and profitability is expected to further improve.
3. The integration of the supermarket industry is accelerating, and the leading companies are Hengqiang.
At this stage, Yonghui Supermarket focuses on two major business scenarios: home and home.
In terms of arrival, the temporary fresh food operator and store management capabilities support the competitive advantage of its store scene. At home, the company is currently using the mini store as a carrier to penetrate the community market, and concurrently with online APP and other entrances, promoting the rapid development of the home business.
In terms of extension, the merger and integration of the supermarket industry has also accelerated at this stage, and Yonghui has abundant book capital, and the possibility 深圳spa会所 of extension integration is not ruled out in the future.
Estimates suggest maintaining earnings forecasts.
The current sustainability corresponds to 2019 / 20e 35 / 29x P / E, maintaining the outperform industry rating and target price of 11.
3 yuan, corresponding to 2019 / 20e 39 / 33x P / E, 13% upside.
Competition in the risk industry continues to intensify; new store cultivation has fallen short of expectations.