Suning Tesco (002024) Quarterly Report Review 2019: Revenue Growth Meets Expectations All Categories Strengthen Refined Operations

Suning Tesco (002024) Quarterly Report Review 2019: Revenue Growth Meets Expectations All Categories Strengthen Refined Operations
This report reads: Revenue growth is in line with expectations, offline stores are accelerating, home appliance consumption recovery and 南京桑拿网 policy implementation are expected to help the same store recover. The industry as a whole is facing the return of offline channel values. Suning ‘s omni-channel, multi-category strategy will continue to strengthen its competitive advantage. Investment Highlights: Maintain Overweight rating. The revenue end of 2019 is expected to achieve 25% + growth, maintaining the EPS forecast for 2019-2021 of 0.17, 0.22, 0.30 yuan, maintaining a target price of 17.64 yuan. Revenue growth is in line with expectations.Revenue in the first quarter of 2019 was 62.2 billion yuan / decade +25.44%, of which it is expected to maintain a 10% offline growth rate and an online growth rate of about 40%; net profit attributable to mothers1.36 ppm / decade +22.16%; deduct non-net profit -9.9 ppm / 4931% for four years. The non-recurring gains and 重庆耍耍网 losses are mainly the accumulated investment income after the Wanda business-to-long-term equity investment equity method accounts.88 ppm, the difference between fair value and book value4.48 ppm; EPS 0.015 yuan; overall GMV869.26 ppm / decade +25.38%. The online is slightly defective but still higher than the industry level, the offline city expansion, the store model reorganization, and the same store waiting to be improved.Online GMV541.24 ppm / decade +36.09%, self-operated 379.09 ppm / decade +40.87%; open platform 162.15 ppm / + 26% at the beginning of the year. In Q1 and Q2 of 2018, the growth rate will remain at a relatively high level. It is expected that the platform growth rate will stabilize in the future under a high base.The store opened 931 new stores / already has 5,098 stores / reserved 1046 stores. It has launched functions such as “Suning Post Office” and “Small Store Cloud Super”, and launched a community group “Su Xiaotuan” to strengthen its social attributes.There are 451 new retail cloud franchise stores and 2499 existing ones. It is expected that 2000+ stores will continue to open in 2019.Q1 same store -4.92% of the current expectations, in the second quarter with the recovery of consumer electronics appliances, promotional policies and other pull attempts to improve. The omni-channel and multi-category superimposed infrastructures highlight the competitive advantage.As of the end of March, the storage area (including Tiantian) was 9.64 million square meters and the number of courier outlets was 267 million. It is expected to continue to accelerate the construction of logistics and warehousing in the future.Established five major international commodity groups including home appliances, fast moving consumer goods, fashion department stores, consumer electronics, and intensive supply chain management operations. Multi-category and industry-wide collaboration continue to enhance competitive advantage. Risk factors: economic recession weighs on consumption, industry competition intensifies, etc.