2021.09.10
■ Yonghui announced a sales decline of 7% in 1H21 to Rmb46.8bn and a net loss of Rmb1.08bn, below our estimates, due to fierce competition from the community group purchase platforms.
■ The Company said that sales growth in July was up 9.4% yoy, from negative yoy growth in 2Q21. We expect sales in 2H21F to grow by 5% yoy but Yonghui to continue to incur a loss, since it is still in the transitional period of adjusting its model.
■ Reiterate Hold with a lower DCF-based of Rmb4.3.
