Suning Tesco (002024): Weak demand, sales pressure category management and marketing efficiency improvement

Suning Tesco (002024): Weak demand, sales pressure category management and marketing efficiency improvement
The main points of the report describe the first three quarters of 2019, the company achieved operating income of 2010.09 million yuan, an increase of 16 in ten years.21%, attributable net profit was 119.30,000 yuan, an increase of 94 in ten years.28%, attributable non-net profit is -41.52 ppm; In the third quarter of 2019, the company achieved operating income of 654.37 ppm, a five-year increase of 5.05%, attributable net profit is 97.64 ppm, attributable non-net profit is -9.6.2 billion. Event Comment Due to the sluggish demand for home 南宁桑拿 appliances and 3C, the company’s sales growth in the third quarter was under pressure.In the first three quarters of 2019, the company’s operating income increased by 16 per year.21%, of which 2019Q1 / Q2 / Q3 respectively increased 25 year-on-year.44%, 20.10%, 5.05%, the first three quarters of 2019 to achieve a total terminal sales scale of 2759.10,000 yuan, an increase of 17 in ten years.46%, of which 2019Q1 / Q2 / Q3 increased by 25 respectively.38%, 18.66% and 9.72%, of which online self-employment increased by 40 each quarter.87%, 14.35% and 8.71%, online platforms increased by 26.08%, 35.24% and 48.56%, the growth rate in the offline ten years was 10.97%, 17.42% and -4.52%, corresponding to the first three quarters of home appliances 3C home life specialty stores, comparable stores fell by 7.22%, down 5 in the first half year-on-year.66%, the decline showed an increase from the previous month. In the first three quarters, Suning Tesco Red Children’s comparable store increased by 10%.80%, comparable stores directly operated by Tesco are down by 6 every year.55%. Optimization of category management and adjustment of business structure, improvement of comprehensive gross profit margin, and improvement of marketing conversion efficiency.The company strengthened single product operations and vigorously promoted independent products. At the same time, service income from online and offline platforms increased, and the scale of financial business income continued to increase, leading to an increase in gross profit margin in the first three quarters of 2019.03 singles, of which the gross profit margin increased by 0 in the third quarter.96 single, the rate of increase during the single third quarter increased by 1.19 units, of which the increase in sales expense ratio increased by 1.27 per share, the management expense ratio is reduced by 0 every year.24 units, maximize the financial expense ratio to 0.16 people, of which, due to the increase of the staff share rate of the employee shareholding plan, the increase in rental costs and logistics expenses due to the investment in small stores, and the increase in the advertising expense rate based on the strengthening of social operations, the overall average of the first three quartersConsidering the impact of the Suning store, the non-net profit attributable to deduction is -14.05 ppm, of which -4 in the third quarter.2.8 billion. Investment suggestion: We are optimistic about the company’s leading online and online integration management advantages. The 3C market share of home appliances continues to increase. In the future, the strategic layout of FMCG categories will accelerate, achieving high-scale growth. The company’s two rounds of repurchase will demonstrate long-term confidence.The annual expected income PS is only 0.35 times, maintain “Buy” rating. Risk 杭州桑拿网 Warning: 1. Promote changes in consumer policies, further pressure on terminal consumption; 2. The market is expanding rapidly, and capital expenditures are expanding or difficult to manage.