Suning.Com(002024) 华通证券国际·2025-02-05 09:10Investment Rating - The report assigns a positive investment rating to ST Yigou (002024.SZ), indicating a favorable outlook for the company's performance in 2024 [2][3]. Core Insights - ST Yigou is expected to achieve a net profit of 500 million to 700 million RMB in 2024, marking its first annual profit since 2020, driven by government support policies and operational improvements [2][3][4]. - The company has seen significant sales growth, particularly in the fourth quarter, with a year-on-year increase of 64.6% in store sales, largely due to the "old-for-new" appliance subsidy policy [2][4]. - The report highlights the company's strategic focus on optimizing its retail service capabilities and enhancing its core business in home appliances [4][7]. Summary by Sections Financial Performance - In 2024, ST Yigou is projected to turn a profit, with quarterly performance showing a loss of 97 million RMB in Q1, followed by profits of 112 million RMB in Q2 and 584 million RMB in Q3 [3][4]. - The company anticipates a positive net profit in Q4, excluding the impact of foreign exchange fluctuations on its financial assets [3][4]. Market Dynamics - The Chinese home appliance market is expected to reach a retail value of 907.1 billion RMB in 2024, with a year-on-year growth of 6.4% [5]. - The government's expansion of the "old-for-new" subsidy program to include more product categories is expected to further stimulate consumer demand [10][11]. Business Strategy - ST Yigou is focusing on enhancing its retail service strategy, optimizing store layouts, and improving the efficiency of its larger stores [7][15]. - The company plans to open and upgrade over 300 self-operated stores in 2024, including new formats like SuningMax and SuningPro, which aim to provide a better shopping experience [7][15]. Cost Management - The company has successfully reduced total expenses by 21.94% to 9.04 billion RMB in the first three quarters of 2024 while maintaining stable gross margins [8][9]. - Non-recurring gains from asset disposals and debt restructuring are expected to contribute approximately 1.8 billion to 2 billion RMB to net profit [9]. Consumer Engagement - ST Yigou has implemented a multi-channel strategy to enhance consumer engagement, including online promotions and community service initiatives [12][13]. - The company has conducted over 16,000 "old-for-new" events in rural areas, significantly increasing the volume of exchanged appliances [14]. Management Confidence - The management has shown confidence in the company's future by increasing their shareholdings and executing a share buyback program, which has positively impacted the company's market value [17][18].