Category: Money Tips Date: 2007-07-25
Department stores have great potential for business growth: company's department store business by the middle and low public goods, turned to running a fashion in the high-grade goods. The company in September 2006 on the north, south, 3,4,5-floor store room and conducted a comprehensive transformation, carried out a large-scale readjustment, so that the commodity mix, shopping environment, the more high-end fashion, the introduction of Shiseido, Chow Sang Sang , Kaltendin and a number of domestic and international core brands, new brands and up to 30%, while cleaning out 15% of the small miscellaneous goods, improve the store brand grade. Commodity structure adjustment and transformation of shopping malls has made good results in 2006, "11" during the company's sales rose 60%.
Of the Composite Consumer Circle led business development department store: The company is building a 21 million square meters of "New World of the Composite Consumer Circle", covering business, tourism and hotel industry, property and tourist entertainment. In the business structure, the traditional department store business accounted for 35% of total revenue, while the company's new travel involved in the hotel industry will account for 28%, entertainment and account for 15%, food 8%, business office and support measures for 14%.
Triggered acquisition of high-quality commercial real estate value of outstanding assets is expected to be adopted into the major shareholder to increase control: The company has a great potential for the commercial real estate appreciation, making the company the value of outstanding buy. Huangpu District, the SASAC's largest shareholder equity ratio is low (25%), in order to maintain the holding position, we expect that will be injected into high-quality commercial assets of Nanjing Road, so that the proportion of shareholding increased to 35-40% or so. Huangpu District, the SASAC has a more commercial real estate, asset strength. Nanjing Road 68 commercial buildings, Huangpu District SASAC occupy 1 / 3, the famous Bund, Huangpu District, on the 6th are all assets owned by the SASAC. Expected time for implementation of additional orientation no later than March 2006, due to stock reform promised to raise corporate shares (about 11%) restricted sale period ended March 30, 2007, if this part of the shares put into circulation, will increase the company was acquisition possibilities.
Equity incentive plan: the company has promised reform of the stock option incentive plan to be implemented, according to the China Securities Regulatory Commission, "Listed Companies Equity Incentive Management (tentative)" and the concrete implementation of the relevant provisions of the State. After the completion of the management of equity-based incentives, corporate governance structure will further improve the development of adequate power even more. For the company's future development, we are guarded, optimistic expectations, expected next three years the company will maintain a 30% growth rate.
Although the company in good condition and income growth strong, but taking into account the additional directional expectations, the company's actual growth potential may be delayed to the issuance and released in 2006, 2007 earnings per share were 0.30 yuan, 0.40 yuan. In view of the company location, huge asset appreciation potential, a major shareholder assets into the business performance of the thickening, and the imminent implementation of equity incentive for development of the company's ongoing push to continue our investment rating to "overweight."
