Suning Tesco (002024) comment on the impact of the epidemic: the impact of the organic epidemic in crisis is controllable, and the response is actively adjusted

Suning Tesco (002024) comment on the impact of the epidemic: the impact of the organic epidemic in crisis is controllable, and the response is actively adjusted
The company’s multi-format, full-scenario layout effectively cushions the short-term epidemic distortion.Sub-business segments such as Online Tesco, Carrefour, and Suning Store have seen significant holiday growth. Hedge appliance store sales have grown, and overall revenue in January is expected to maintain double-digit growth.During the nationwide epidemic prevention, express delivery and the supply chain of small and medium-sized businesses are difficult to recover quickly. Self-mobilization ability is the core competitiveness of sales recovery.Suning’s self-employed ability highlights its advantages, and it is expected to take advantage of this to further promote the company’s 杭州夜生活网omni-channel business integration and transformation, and build the consumer mentality of all-category comprehensive retailers. Multi-format hedged short-term and short-term shocks, and double-digit revenue growth in January.The impact of the epidemic on Suning ‘s different industries has been differentiated. Online Tesco ‘s self-employed “no Spring Festival break”, Carrefour and Suning stores have effectively linked together. The three together form the Suning holiday season, and the multi-dimensional sales scene of epidemic prevention supplies promotes the company.Double-digit revenue growth was maintained in January.The closure of large electrical appliance stores during the holidays affects short-term income, but the annual proportion is limited, and the consumer demand for household appliances is mostly backward and does not disappear.Department stores were hit harder by the epidemic, but it is expected to benefit significantly from Wanda’s commercial rent-free policy (the 37 department stores acquired by the company all benefit). Online: Self-employed to reverse the image, the promotion is reduced, and the gross profit margin is increased.Short-term third-party express delivery and the supply chain of small and medium-sized merchants are difficult to recover quickly. Suning has ushered in the harvest season for many years from the construction of the supply chain and logistics infrastructure in the camp. It is expected that the main station traffic will rise rapidly in January and sales will increase by more than 30%. Carrefour & Small Shop: Establish three-dimensional home delivery capabilities.Carrefour’s growth has been good after the consolidation. The revenue in Q4 2019 resumes growth and reverses losses. Since the beginning of 2020, the income end affected by the epidemic is expected to further accelerate growth.And then the Suning store will be around Carrefour stores to realize three-dimensional home business capabilities and supply chain docking. Offline appliances: affected by the closure of the epidemic, it is expected to decrease in the short term.The Spring Festival holiday is the off-season for home appliance sales, and the historical lunar month is only a small number of scheduled sales.15 “,” 4.18 “,” 6.18 “and other promotional cycles are the main sales point of electrical appliances in the first half of the year.In addition, Suning stores are leading the transformation of the Internet. Out-of-store sales based on the “clerk-customer” social relationship have been promoted on a large scale. It is expected that the company’s leading edge will be further enlarged in the weak industry. Risk factors: The epidemic affects consumer demand; logistics is difficult to recover; physical store operating pressure is increasing. Investment suggestion: If the epidemic situation is at risk, it may become organic, or become a company’s omni-channel, and the opportunity for all categories to accelerate.Self-mobilization ability is to restore the core competitiveness of current sales.Suning’s self-employment highlights its advantages. It is expected to take advantage of this to further promote the company’s omni-channel business integration and transformation, and establish the consumer mentality of all-category integrated retailers, which will become an important possibility for the company’s mid-to-long-term industry upgrade.The combined company’s performance forecast and the impact of the epidemic have lowered its revenue forecast for 2019-2021 to USD 2874/3440/3918 billion (the original forecast was USD 2917/3573/4089 billion) and its parent net profit forecast is 111.6/26.7/60.600 million (previous forecast was 119.6/31.9/67.深圳桑拿网 500 million), maintain “Buy” rating.