Yongle Report By Morgan Stanley, “leng Jian,” Single
Mainland Appliance Retail Giant Yongle Home Appliances in Hong Kong, released its 2005 results, revenue rose 48.1% to 8.267 billion yuan. Although the issue has Yongle Morgan Stanley will sponsor its rating from “overweight” down to “neutral”, but there are still many in the industry who continue to favor the industry. Paradise chairman Chen Xiao is forecast through the next 1-2 years of industry consolidation, the gross margin in the industry to increase substantially.
Wing-lok report shows that, in addition to increased sales, gross profit also by 583 million yuan in 2004 rose 56.9%% to 914 million yuan. Last year, the company maintained its rapid expansion in the Mainland market momentum, the number of stores to 92 from 2004 to the end of 2005 193. , Shanghai, Jiangsu and Zhejiang is still the company’s main source of income, the total turnover of 81.8%%. Products, the company is still the traditional home appliances
Sell The main contributor to revenue, up 56.6%% of income. In 2005 the company’s gross profit margin remained at 7.5%% level.
Industry profits drop single shop Paradise surrender in a brisk day of the annual report, the issue of Paradise sponsor Morgan Stanley report was issued, is accelerated more than expected due to cost, expects earnings to decline in 2006-2007 25%% – 27%%. Hong Kong Prudential Securities analyst, said Kingston Lin, given the impact of macro-control, market blitz of retail stocks will be cool. Secondary market, yesterday (April 24, 2006), Paradise stocks slid 20.35%%, to close at 3.425 Hong Kong dollars.
“I admit being too Competition The impact of the industry’s single-store profits declined. “Paradise chairman Chen Xiao yesterday (April 24, 2006), told reporters.” Since there is currently home appliance retail industry, “irrational competition”, which reduced the
Retailers Profit margin, while the cost increase because of competition (such as shop rental increases) also made Paradise challenges. ”
Placing of new shares may be
“I think the industry is entering a consolidation phase, mergers and acquisitions will be more and more consolidation in the end the year 1-2, then there will be substantial increase in gross profit margin of space.” Xiao-case forecast. At 19, Yongle and Dazhong has just announced the integration of awful Mainland China’s third largest and fifth-largest home appliance retailers, marriage, will make the Yongle
Home appliance retail chain The competition between them and the opponent’s distance. According to data released by the two sides, medium and large and Paradise in 2005 total sales were 13 billion yuan and 186 billion total has reached 31.6 billion yuan, while the
States United States And Suning Last year, sales were 49.8 billion yuan and 39.7 billion yuan.
Although the Paradise area avoid the use of “purchase” and other words, but according to Wing-lok, said a senior Paradise this year will “eat” into the medium and large all of the shares, which were sized to Beijing as the center of the North China market wide network. Yesterday (April 24, 2006), Citibank issued forecasts Paradise acquisition sized demand for capital are likely to be the placing of new shares. In response, Chen Xiao no positive response yesterday, he just said, “the analyst forecast has a professional point of view.”
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