Gome (0493.HK) 2008 Annual Results Comment
Event playback:
GOME Electrical Appliances
Night at 27, published its 2008 annual results, significantly worse than expected: by 2008
Sell
Income of 45.9 billion, an increase of 8.03%; consolidated gross margins have rebounded somewhat to 1.3 percentage points to 16.94 percent; operating profit of 19.4 billion yuan, up 7.8%; net profit of 1.05 billion, compared with 1.13 billion in 2007 fell by 7 %; net non-operating items (primarily convertible bonds and
Triple Trading Company
Equity investment losses), the 2008 full year net profit of 19.4 billion yuan, up 7.8%.
Before this market (according to thomson data) to
States United States
Expected sales of electrical appliances around 49,000,000,000 yuan, net profit of more than 20 million, far below the actual release of data expected in this market, even the adjusted net income is also higher than market expectations of 20 to 50%; announced major performance margin decline was due in four quarterly sales season's dismal performance, and rising operating costs and the deteriorating business environment caused.
4 quarter slump, significantly worse than expected
Gome weaker than expected performance in 2008 is a major cause of sluggish performance since Q4: a significant decline in sales, sales history, four quarter peak, but only recorded in Q4 sales of 95 billion than the 21.9% decrease over the same period the previous year (the first 3 quarter cumulative increase of 20%). The significant sales decline in the United States for the country is a very bad signal, but results for the four-quarter decline because the company did not give clear explanations, we estimate that
Huang Guangyu
Event for the country in 4-quarter U.S. sales of great influence, and clearly felt that the economic crisis, the impact of the home appliance chain industry is also much greater than the impact on other retailers.
Cost, 4-quarter sales management costs are also significant rise in the past three quarters led to operating margins fell 5.1% to 0.8%; plus the end of the year credited to non-operating loss, up to 4 quarter 5.5 billion loss, dragged down by a serious situation in the overall performance of the year.
Sales efficiency fall significantly in 2008, the deteriorating business environment
2008 Gome opened 139 stores, the business area of 2,960,000 square meters, respectively, representing an increase of 18.3% and 19.8%; But while sales grew only 8%, resulting in sales of only 15,503 per square meter / square meter compared to 17,194 in 2007 yuan / square meter decreased by 9.8%, continuing the downward trend.
From m down to see the performance of the company now faces competitive pressures and the deteriorating business environment is still very serious, because stores will not reduce the inherent costs, and has become the first in the industry, Gome the economies of scale and bargaining ability of the advantages of upgrading has been very limited, continued decline in operating efficiency will lead to increasing pressure store operating costs, 2009 could decline even further.
Working capital has deteriorated slightly, starting tight cash flow
The data from the table is not difficult to see the company's accounts payable days to 124 from 2007 fell to 117 days, either from the number of days or the absolute amount of turnover has shown a significant decline on, but the whole and Before the situation is not pessimistic market expectations.
The other hand, as the company's cash and security deposits have appeared more substantial reduction in the company's free cash flow starting tight, thanks to the company's primary source of funding the expansion through the occupation of payments due to suppliers, and 2008 decline in the proportion of the new expansion leading to the company's capital expenditure takes up more of the company's free cash flow, taking into account the 2011 redemption of convertible bonds began to risk, financial pressures will continue to increase, the company's future business risks will continue to increase.
Should be worried about business prospects in 2009
Received sustained pressure of the economic crisis, companies in Q4 2008, there have been more substantial performance decline, can curb the downward trend in 2009, and even rebound is still unknown: home appliance industry is different from the supermarket and department store chain the retail industry, the demand for its products, and new home sales are very closely related, although the trend of the real estate market rebound, but the peak is over 2007 great fall, at the same time,
Bringing home appliances
Although the activities can increase the demand for home appliances, 2 or 3 tier cities, but not the main battlefield of home appliance chain industry, Gome really can help listed companies is still uncertain how much the industry as a whole gradually shrinking demand caused by the company in 2009 The increase in operating pressure; since the same period
Suning
Electrical appliances, Gome clear downward trend is not expected to face from Suning, Gome in 2009 will further increase the competitive pressure; can effectively control the square performance of the company further down the first issue to be resolved.
I am an expert from China Products, usually analyzes all kind of industries situation, such as steel gun cabinets , electronic gun safes.
Processing your request, Please wait....
