Suning Tesco (002024) Annual Report 2018 Review: Core Profit Repair Speeds Up Omni-Channel Construction

Suning Tesco (002024) Annual Report 2018 Review: Core Profit Repair Speeds Up Omni-Channel Construction
The revenue growth rate is compounded by expectations. The core profit repair company released the 2018 annual report, and its operating income in 2018 was 2,449.570,000 yuan, an increase of 30 in ten years.35%; net profit attributable to mother 133.280,000 yuan, net profit after deduction is -3.5.9 billion; non-adjusted net profit after deduction reached 3.120,000 yuan (including investment and wealth management income).Realizing EBIT 45.78%, an average increase of 43% per year.The sales volume of omni-channel products in 2018 was 3367.570,000 yuan, an increase of 38 in ten years.39%.We measure the company’s core profit, excluding the net profit from the above investment income (excluding financial management income), and the impact of finance, Chongqing Maoning E-commerce, Tiantian Express, etc., the core business profit in 201829.0.6 billion, the previous repair was obvious. The gross profit margin is optimized, and the operating expense rate is expected to improve in 2018. The company’s comprehensive gross profit margin is 15.00%, a year increase of 0.90pct is mainly due to: 1) commodity price management and control has increased the daily gross profit, promoted the adjustment of commodity structure, and optimized the supply chain; 2) the opening of platforms, logistics, and financial services increased value-added services revenuePeriod expenses14.19%, a year up 0.46cpt, the increase in operating expense ratio was better controlled.Financial expense ratio quarterly +0.34pct reaches 0.50%, mainly supply chain financing, accelerated development of consumer finance business and other factors. Segment evaluation: Reasonable estimation interval 14.48-19.At 46 yuan, the book cash value is not considered for the time being. We plan to make segment estimates based on offline, online platforms, logistics, finance, and own 北京夜网 property.Among them, offline business is estimated at 620-827 trillion, and online business is based on P / GMV = 0.1- 0.15x calculation, the estimated interval is 208.3-312.4.5 billion; logistics business is estimated to be 22.8 to 38 billion; financial business is estimated to be 230.4.4 billion; property value of own stores is 62.7.3 billion.In summary, we believe that the company’s reasonable estimate range is 1349-1812 trillion, corresponding to 14.48-19.46 yuan, the current sustainable margin of safety, maintain the “Buy” rating. Risks suggest that the rapid expansion of multi-format businesses is a drag on performance; expense ratio repairs are less than expected. High-speed growth, omni-channel multi-format construction speeded up, maintaining a “buy” rating.The company’s net profit is expected to be 173 in 2019/2020/2021.27/杭州桑拿网30.85/48.1.1 billion.We think the company reasonably estimates the interval 14.48-19.46 yuan, maintain “Buy” rating.