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Suning Tesco (002024): Performance growth is expected to be optimistic about the performance of small stores after the statement

Suning Tesco (002024): Performance growth is expected to be optimistic about the performance of small stores after the statement
Event: On July 30, 2019, Suning announced the semi-annual results report, and the net profit attributable to the mother for 2019H1 was 21.390,000 yuan, at least -64.37%, after deducting the increase in net profit brought by the operating restructuring and equity transfer in the first half of Suning Xiaodian, the net profit attributable to the parent is 8.0 billion, and canceled the non-recurring profit and loss impact of Q1 company (11.Without the consideration of other non-recurring gains and losses in Q2, the operating profit range of H1’s main business is approximately -3.26 trillion, lower than last year’s 0.3.3 billion. Affected by weak home appliance sales and store adjustments in the first half of the year, GMV and revenue growth accelerated.In the first half of 2019, the revenue and GMV growth rate were level one quarter by quarter, and H1 operating income was 1346.1.8 billion (+21.63%), GMV1842.1.5 billion (+21.80%).By quarter, Q2 revenue was 723.7.6 billion (+18.54%), and measured online income of 361.2.1 billion (+14.55%), offline income was 362.5.5 billion (+22.80%); Q2GMV was 97.3 billion (+18.67%), online 北京夜网 GMV achieved 580.2.6 billion (+19.52%), offline GMV is 392.6.3 billion (+17.43%); offline GMV accounted for 40.36%, with a revenue share of 50.09%.We expect the rapid adjustment of revenue growth to be related to the weak sales of home appliances in the first half of the year. According to the data of Zhongyikang, the retail volume of the air-conditioning industry will be replaced respectively in April, May and June of 2019.83% / 15.7% / 4.7%; and related to the adjustment of stores, in the first half of 2019, 799 directly operated stores were closed. Other business divisions were adjusted slightly, combined with the high base last year, and the same store was under pressure, resulting in revenue and GMV growth. The home appliance omnichannel accounted for 22.4%, retail cloud reinvents Suning.According to the “Semi-annual Report on the Chinese Home Appliance Industry 2019” 无锡桑拿网 released by the China Household Electrical Appliance Research Institute and the National Appliance Industry Information Center on July 30, the retail sales of China’s home appliance market in the first half of 2019 was 412.5 billion, with Suning accounting for 22.4%, continued to lead the omni-channel first, far exceeding Jingdong’s 14.1%.Among them, the offline market Suning accounts for 18.0%, Gome accounted for 8.5%; online Suning accounts for 30.4%, Jingdong accounted for 39.6%, Tmall accounted for 22.6%.The sinking market has further accelerated. As of the first half of 2019, there were 3,362 retail cloud franchise stores and 1,746 directly operated stores. The store structure was further optimized + franchise stores expanded quickly, and the sinking market started a defense battle. Develop independent brands and layout across the scene to jointly create an open e-commerce platform ecosystem.Since its establishment six months ago, Suning Appliance Group has been focusing on the construction of commodity supply chains, actively developing C2B and C2M businesses, and promoting the development of independent products.Up to now, Suning has released thousands of new Suning Xiao Biu series intelligent products, covering the field of home appliances.In essence, Suning acquired Wanda Department Store and Carrefour China successively, completing the last piece of the puzzle of the whole scene and all categories of retail layout, and the market share continued to expand.At the same time, through the further opening of the supply chain, Suning’s open e-commerce platform ecosystem is expected to further open up.And with the overall igniting of the 818 war, it is expected that the improvement of Q3 quarter operation will improve. Investment suggestion: Suning is currently estimated to be at a historically low level. According to the segment estimates, Suning’s market value space is about 180 billion yuan, and it is strongly recommended. Risk warning: economic downside risks, fierce competition, omni-channel integration is less than expected, online growth breakdown, etc.