Month: March 2020

Suning Tesco (002024) Company Express: High base of investment income affects profit growth and expects profitability of small stores to improve
Incident company disclosed semi-annual report, revenue of 1355 in the first half.71 ppm / + 22.49%, achieving net profit attributable to mothers21.39 ppm / -64.36%, realizing net profit of -31 after deduction to non-returning mothers.9 billion.Earnings per share are approximately zero.23 yuan. The company achieved revenue of 733 in the second quarter.30 ppm / + 20.10%, realizing net profit attributable to mother 20.04 ppm / -65.99%, realizing net profit of -21 after deduction.9.9 billion. Key points of investment: Online appreciation of expected income affects revenue growth, high investment income affects profit growth: at the revenue end, the company achieved a 22% increase in operating income in the first half of the year, and the revenue growth rate in the second quarter improved, mainly due to onlineThe GMV growth rate was affected, and the GMV growth rate on the Q2 line decreased from 36% in Q1 to 20%.In the first half of the year, online games accounted for about 61% of GMV. Online changes will affect the degree of revenue changes.On the net profit side, the annual interval of net profit attributable to mothers in the first half of the year was 64%, which was due to the high profit base formed by the sale of Alibaba shares in the same period last year.In addition, the Suning shop released its balance sheet at the end of June. Without considering the business reorganization of Suning store and its revenue from the balance sheet, the company realized net profit attributable to its mother in the first half of the year7.610,000 yuan, net profit after deduction is about -9.7.7 billion. The online GMV grew faster than the straight line, and offline mergers and acquisitions of Wanda Plaza promoted the growth of GMV: online, the Internet dividend is approaching the end, and the high growth rate of online retail has improved.As of the end of the second quarter, the number of registered members of Suning Tesco’s retail system has continued to reach.4.2 billion people, an increase of 23 in ten years.8%, a quarter-on-quarter increase of 4.7%.In the first half of the year, Suning Tesco achieved an online GMV of approximately 11.twenty one.5 ppm / + 27%, of which GMV is about 797.0 ppm / + 26%, open platform GMV is about 324.600 million / + 31%.Q2 Suning Tesco achieved an online GMV of approximately 580.3 ‰ / + 19.5%, online GMV high-speed growth in the second quarter of the first quarter. Offline, the acquisition of Wanda Plaza expanded the store area, and accelerated the growth of offline GMV.In the first half of the year, the company’s Suning Tesco direct-operated stores closed on a large scale, reducing the number of stores (excluding Suning stores) at the end of Q2 by 667 to 4,037 earlier.Among them, there are 37 Suning Tesco Plazas (formerly Wanda Plaza), 1746 Suning Tesco Direct Stores, 2110 home appliance 3C stores, 172 mother and baby stores, and 9 supermarket stores.Due to the relatively small Suning Tesco stores, the area of Suning Plaza is relatively long. At the end of the first half of the year, the operating area of Suning’s offline business increased by 15% earlier to 6.94 million square meters, which promoted the offline GMV of about 720 in the first half of the year.1 ppm / + 14.5%, of which Q2 achieved GMV growth of 17.7%, the growth rate has been improved.Affected by the land cycle and the retail environment in the first half of the year, the 3C store efficiency of Suning Appliances decreased by 4%.9%, e-commerce retail cloud-operated stores reduced floor efficiency by 9.0%, and the maternal and infant shop floor efficiency 深圳桑拿网 increased by 24.7%. In terms of different categories, the category of small household appliances including department stores has grown rapidly, and FMCG products can help increase user stickiness.In the first half of the year, the company’s revenue from small appliances including small appliances, red baby maternal and child beauty, household food and other daily necessities increased by 67%. Revenue from communications products, air-conditioning products, white goods, and digital products increased by 0.9%, 17%, 19%, 7.5%, small appliances and department stores promote revenue growth.In the first half of the year, Suning Tesco gradually consolidated the supply chain of fast-moving consumer goods. According to Yibang Power Network, during the period of 618, Suning’s fast-moving consumer goods orders increased by 245%, and the total channel orders increased by 133%.The company intends to acquire Carrefour China, which is expected to further integrate FMCG resources and increase user stickiness and repurchase rate. Price competition strategy has gradually improved. Gross profit margin has been reduced, and the increase in investment income has increased the net worth. In terms of profitability, the company has actively engaged in price competition strategies and increased promotional expenditures on categories. The gross profit margin of major categories increased and decreased, and the gross profit margin decreased in the first half of the year.Down 0.39 points to 14.04%.In the first half of the first half of the year, the employee shareholding plan led to an increase in management expenses, comparable store reductions and rapid expansion of Suning stores to promote higher sales expense ratios, and rapid development of supply chain financing and consumer finance pushed up financial expense ratios. In the end, the company’s total expense ratioBoost 2.66 points to 16.55%.In addition, in the first half of the year, the company’s investment income from the Suning store was not as good as the investment income from the sale of Alibaba’s equity in the same period last year, and the company’s net interest rate fell.59% to 1.54%. Investment suggestion: Suning Tesco insists on the integration of online and offline development.Carrefour consolidated its revenue to boost its sales. Small stores and financial services plan to release their watches. The deduction of non-net profits may be expected to recover.Our company predicts that the annual revenue from 2019 to 2021 will be 1.79, 0.36 and 0.41 yuan.Return on net assets were 17, respectively.4%, 3.4% and 3.7%.Currently the company PS (TTM) is about 0.37 times, lower than 0 of Vipshop.45 times, maintain the “Buy-B” recommendation. Risk warning: M & A integration may be lower than expected; there are uncertainties in the expansion of multiple categories; and the effect of strategic conversion may be lower than expected.