Sunning Yun To Pfer 11 Stores

It is reported that the operation mode of innovation assets referred to by Suning cloud merchant is to pfer all related rights and interests of wholly owned subsidiary holding high quality store assets to private equity investment fund and related parties.

On the one hand, Su Ningyun merchants can gain value-added returns and cash withdrawal from quality stores; on the other hand, Su Ningyun dealers get the long-term right to use the property in a stable rental price and long-term lease.

Tap the value of O2O retailers

Recently, Suning cloud business announcement said that the price of not less than 4 billion 11 million yuan will be pferred to all private equity funds and related parties by all the rights and interests of a number of wholly-owned subsidiaries composed of 11 private property assets.

Through this paction, sunning cloud business expects to achieve net income of 1 billion 300 million yuan.

Specifically, Suning Yun will first set up 11 wholly-owned subsidiaries with 11 home owned property rights and corresponding land use rights, with registered capital of 5 million yuan.

As of July 31, 2014, the above assets valuation value was 4 billion 11 million yuan.

After that, Suning Yun will pfer all the related interests of the 11 wholly owned subsidiaries to the private equity investment fund and related parties launched by CITIC stone fund to carry out the related innovative asset operation mode at a price of not less than 4 billion 11 million yuan.

After the paction is completed, Suning Yun will rent 11 properties at the market price and continue to run the chain stores. The actual rental price shall be based on the leasing contract signed by the company and the pferee or its designated party.

The company expects the paction will not affect the daily operation of the company's stores.

It is reported that CITIC stone fund was established in July 2013, is a wholly owned subsidiary of Gold Stone Investment Co, the main business is to raise and manage customer funds for equity investment, to provide customers with equity investment in financial advisory services, investment management and related consultation.

This is another REITs demonstration product launched since CITIC first took the lead in listing CITIC products in China in May 2014.

Converting large property into standardized products by REITs is the best way for commercial real estate to be sold to the public through the capital market. This is also considered one of the most important financial innovations in the last century.

CITIC aimed at sunning's O2O store, which can be seen as an important step towards the commercialization of CITIC Securities REITs mode.

Industry analysts said the CITIC stone fund chose Su Ningyun business, on the one hand, to see its superior assets with more than 1600 offline stores. On the other hand, it may also be a strong signal to release external assets securitization.

The CITIC stone fund chose the assets of Su Ningyun's 11 high quality stores in Beijing, Chengdu and Chongqing. It is a full affirmation of the value of its store assets and the potential value added in the future.

In sunning O2O Internet retail pformation process, these stores are of great significance for improving user experience, building corporate brand image and mobile Internet development. Long-term stable rental contracts also provide protection for CITIC REITs products.

For Su Ningyun dealers, through the cooperation with CITIC, innovative asset management mode, revitalize the stock assets, and get enough funds to return to the foundation, it can purchase high-quality stores again, establish a good asset management mode from purchase to operation, and continue to consolidate offline stores, which is conducive to better integration of Online and offline businesses, improve the O2O mode of Internet retailers, further highlight the advantages of O2O, consolidate the advantageous resources of stores, and promote the pformation and upgrading of enterprises.

According to industry analysis, CITIC Jinshi fund will join hands with sunning cloud merchants to strengthen the innovation enthusiasm of REITs marketing, and the value of O2O retailers will also be vigorously excavated, which will be favored by the capital market.

Su Ningyun business will promote strategic pformation

In fact, Suning's performance in the first half of this year is not satisfactory.

In the first half of the year, the company's revenue decreased by 7.87% compared to the same period last year, and the loss was as high as 755 million yuan, compared with 734 million yuan in the same period in 2013. This is also the first time that the company has been listed for half a year with a loss of half year report.

If the paction is completed, a more direct benefit will enable Suning Yun to reduce its asset liability ratio and improve its financial indicators on the basis of its recognition of profits, and to achieve cash inflows and increase working capital.

According to the expectation, through the paction, Suning Yun will receive a paction price of not less than 4 billion 11 million yuan, and is expected to achieve net income after tax of more than 1 billion 300 million yuan.

Su Ning Yun's own assets after sale and rent, financing, supplement, and re investment will promote strategic pformation.

Shenyang Wanguo Securities Analysis, heavy assets to light assets, cash withdrawal and value-added gains.

The company's self assets after sale reversion mode is more mature in overseas business operation. On the one hand, it can gain value-added revenue and cash withdrawal from quality stores, and can lease property for a long time with stable rents. It still controls the stores practically, and does not affect the operation of the company.

After obtaining the capital, the company can put the funds into the pformation of the stores again, and establish a benign asset operation mode of assets monetization and store re investment, so as to store sufficient cash for the store Internet, logistics system construction, marketing and so on, and increase the strength of the arms race.

The future may not exclude the possibility of monetizing logistics assets.

Non recurring gains and losses improve the performance of the year.

Affected by the pformation process and the high base number, 14H1 revenue growth slowed down, the company 14H1 realized revenue of 51 billion 150 million, down 7.89% compared to the same period last year, net profit of -7.55 billion, down 202.93% compared with the same period last year.

And the pformation of the company continues to promote, logistics system, online platform construction costs are high.

This asset operation can achieve more than 1 billion 300 million net income after tax, which is classified as non recurring gains and losses. New revenue can make up for the loss of pformation and gain time for the pformation process.

We believe that we should return to the essence of retail and asset monetization.

Depending on the company's operation and business improvement, it is possible to obtain sustained cash flow and provide profit for reinvestment.

According to our tracking, benefiting from the weakening of the cardinal effect and the pformation process, the company's sales in the three quarter have improved, and the growth rate of the same store is positive, and the growth rate of easy purchase is more than 50%.

Employee motivation, asset securitization and other pformation initiatives are good for the company.

Suning Yun announced earlier that it would push forward the shareholding plan for the company's top and middle level employees, covering the middle and upper level personnel of the operation management, commodity management and logistics service system under the line, raising the code for the pformation and reform, and improving.

Cohesion and competitiveness are conducive to the unity of thought and action in the deep water area.

This exploration of asset monetization operation mode, revitalize the stock assets, raise cash to increase investment for store pformation, logistics system construction, and prevent loss of report form due to non recurring gains and losses, in order to maintain brand image and

Buy time.

The company's financial data showed a quarterly improvement trend due to low base and pformation. The modern logistics system was planned to be completed in 2016, but it was still in 2015, but the marginal improvement trend was obvious.

Increase earnings forecasts and maintain holdings.

The company continues to push the pformation and layout adjustment of offline stores, improve the online user experience, return to the essence of retailing, and promote the full channel business mode.

The company's performance has improved slightly in the 14Q2 ring, and the two lines are still under pressure.

There is no need to pay much attention to financial data in the short term, and more attention should be paid to user experience improvement and product landing.

Shenyang Wanguo Securities expects the company's EPS for 2014-2016 years to be 0.02 yuan, 0.03 yuan, and 0.07 yuan, corresponding to PE 206 times, 132 times, 56 times, and maintaining overweight rating.