Suning Tesco (002024): Achievements Compressed, Short Financial Services Focus on Retail Development

Suning Tesco (002024): Achievements Compressed, Short Financial Services Focus on Retail Development
Event: The company’s third quarter of 2019 reported revenue of 2010.100 million, an increase of 16 per year.At 2%, the net profit attributable to mothers was 1.19 million yuan, an increase of 94 per year.3%, net profit after deduction is -41.500 million, a year reduction of 1755.6%.In the third quarter, it achieved revenue of 654 in a single quarter.4 ‰, an increase of 5 per year.1%, net profit attributable to mother 97.6 million, an increase of 7795 per year.9%, net profit after deduction is -9.6 trillion, 275 a year.2%. The gross profit margin increased slightly, and the expense ratio increased during the period: (1) The company strengthened single product operations, vigorously promoted independent products, online and offline platform-related service revenue, and financial business revenue increased, leading to a gross profit margin increase of zero in the first three quarters.03pp to 14.7%.(2) Staff costs, 重庆桑拿 rental costs, logistics costs brought about by initial warehouse construction, and increased expenditure scales have led to an overall increase in the company’s expense ratio during the period.During the first three quarters, the expense ratio (including R & D expenses) increased by 2.24pp to 16.4%.The sales expense ratio increased by 1.52pp to 12.3%, “management + research and development” expense ratio rose by 0.12pp to 3.2%, the financial expense ratio rose by 0.6pp to 1%. The most complete consumption ecology forms a sustainable driving force for long-term development.(1) Offline development: Termination At the end of September, the company had 3,973 self-operated stores, as well as 25 Carrefour convenience stores, and 4,131 Suning Tesco retail cloud franchise stores (+2060).Among them, there are 54 Suning Tesco Plazas, 1456 retail cloud-operated stores (-912), 2295 home appliance 杭州夜网论坛 specialty stores (+190), 174 maternal and child stores (+17), and 11 fresh Sunson stores (+3)There are 210 Carrefour supermarkets, 25 Carrefour convenience stores, and 68 overseas stores (+2).(2) Online platform operation: In the first three quarters, the company realized the online platform commodity transaction scale of 1714.4 ppm (including tax), an increase of 24 in ten years.3%, of which the scale of self-operated goods sales was 1191.1 trillion, open platform commodity trading scale 523.300 million.(3) Same-store situation: The same-store growth rate of home appliance 3C home lifestyle specialty stores in the first three quarters was -7.2%, Suning Hong child mother and infant specialty store same store growth rate of 10.8%, Suning Tesco retail cloud-operated store same-store growth of -6.6%. Exposing financial services, acquiring Wanda Department Store, Carrefour China, enriching offline scenes.The company strengthened its scene capabilities through acquisitions and specialized commodity supply chain capabilities. It completed the acquisition of Wanda Department Stores in the first half of the year, completed the acquisition of Carrefour China’s 80% shares in the third quarter, and completed the capital increase and share expansion of Suning Financial Services.Consolidate the scope of statements, focus on advantageous resources, and focus on the development of the main retail business. Profit forecast and rating.Considering that Suning Financial will not be affiliated with the company’s consolidation in 2019, it is estimated that the net profit attributable to mothers in 2019-2021 will be 212 respectively.500 million, 17.900 million, 19.90,000 yuan, corresponding to PE is 5/56/50 times, maintaining the “overweight” level. Risk reminder: market risk, foreign exchange risk, store expansion speed is not up to expected risk.