Suning Tesco (002024): The pressure to transfer the equity of Suning’s small stores improved and eased

Suning Tesco (002024): The pressure to transfer the equity of Suning’s small stores improved and eased
Nanjing Yunzhi enjoys giving Suning Xiaodian all the shares, and the company indirectly holds 35% of the shares in the store. The company announced that the company’s affiliate Suning Smart Life has completed its territorial company Nanjing Yunzhi, which enjoys 100% control, at RMB 7.The 45 billion yuan transferee’s wholly-owned subsidiary Suning Convenience Supermarket (Nanjing) Co., Ltd. (hereinafter referred to as “Suning Xiaodian”) 100% equity.After the transfer is completed, the company will hold a 35% interest in Suning Xiaodian through Suning International, and its related parties, Great Matrix & Great Momentum, will collectively hold 65% of the Suning Xiaodian. Increasing the company’s 19-year net profit After the completion of the transaction, Suning Store will no longer replace the company’s consolidated statement scope, changing the company’s financial position and having an impact. The transaction is expected to increase the company’s 2019 net profit by about 34.28 ppm, the specifics of the financial impact will ultimately be based on the company’s audited financial report. The small store is still an important part of the omni-channel scenario. After the balance sheet is released, the capital operation method is more flexible. After the balance sheet is released, the company ‘s capital investment has been reduced. The financing channels of the small store can be expanded and its capital operation method is more flexible.It is expected to effectively support its business development and enhance market competitiveness.At the same time, Suning Store will continue to maintain strategic coordination with the company, and will establish close cooperation in user drainage, marketing promotion, commodity procurement, logistics services and other aspects. Suning’s small shop user traffic has been continuous, high-frequency characteristics, the company will continue to small shop entrance fast full scene retail layout.It is expected that with more flexible capital operation after the release of the table, Suning’s small store exhibitions will maintain high speed, and the promotion of new products and new marketing in the store will also accelerate, providing innovation for other offline formats of the company, including the recently acquired Carrefour China businessBusiness ideas. Upgrade earnings forecast and maintain “Buy” rating. Taking into account Suning’s contribution to net profit in 19 years and easing pressure on subsequent expenses, we raise our forecast for 深圳桑拿网 the company’s fully diluted EPS for 19-21 to 1.96/0.21/0.24 yuan (previously was 1.)65/0.12/0.13) Yuan, small stores out of the table to reduce the company’s full-scene retail layout uncertainty, maintaining a “buy” rating. Risk Warning: The prosperity of real estate in first-tier cities has declined, and the growth rate of consumer demand has not reached expectations.