Data:2009-12-12 2:34
Category: Money tips Release Date: 2006-09-23
Xinhua Department Store (600,785 market, information, reviews, search) in a total of four department store Yinchuan, accounting for the local wholesale and retail trade, about 20% of the market share, the formation of a monopoly in the local commercial network layout, basically no competition. Based on the company in Yinchuan in Ningxia as well as the monopoly of business in the next department store sales can still be maintained not less than the total retail sales of social consumer goods grew more than growth.
Xinhua Department Store, when Wumart acquisition has made it clear the company as a business platform for the Northwest region, Xinhua Department Store achieved through the expansion of the Northwest Territories, the future acquisition of the Northwest Territories, or the new outlets are to be placed in Xinhua Department Store. However, as poor quality of internal management changes and in 2006 by a large number of takeover, in 2007 the focus will be placed on the integration of purchasing networks and the associated series of capital operation will be affected. Wumart support for the company that the current equity incentive introduced, but since the company's management does not have enough funds for their own subscription, the company first introduced the reward fund accrual package is expected to launch equity incentive time in 2007 after the release.
GF Securities analyst Ou Yafei expects earnings per share of 06-08 years, respectively, 0.42,0.55 and 0.72 yuan, net profit CAGR of 36%. The company's monopoly in the Yinchuan area business advantages and future prospects for development in the Northwest region, may give 30-35 times the valuation of the target price of 16.5-19 million, the proposed active "buy."
