China Merchants Securities maintains a strong recommendation rating for three squirrels

China Merchants Securities maintains a “strong recommendation” rating for three squirrels
On May 9, China Merchants Securities ‘research report on the three squirrels’ 2019 financial report showed that the performance of the three squirrels basically met expectations.Barriers to competition, maintain the “strongly recommended” level.On April 29, three squirrels released their 2019 annual report, showing that their revenue was 101.7.3 billion, an annual increase of 45.3%; net profit is 2.3.9 billion, down 21 a year.43%.At present, the company has built an omni-channel sales model represented by Tmall,, food store, and squirrel alliance store, etc., to achieve multi-scenario and multi-format layout, and reach users more efficiently.China Merchants Securities said that the expectation that the three squirrels online account for relatively high snacks will recover quickly, and the gradual income is expected to maintain high growth.Due to the relatively high proportion of online sales, the three squirrels were relatively affected by the epidemic in the short term. The conversion of e-commerce traffic and logistics have gradually recovered. It is expected that the recovery in the second half of the year will be better than the overall situation of the industry.In the next three years, the three squirrels are expected to maintain a compound growth rate of more than 25%. At the same time, offline stores are accelerating online exploration and the impact on the decline in hedging passenger flow.In addition, the epidemic has accelerated the integration of leisure snacks, and the three squirrels have an advantage due to the continuous upgrade of the supply chain efficiency.Under the influence of the epidemic, the traditional grocery store has weak anti-risk capabilities, and the three squirrel single store model has been initially implemented to achieve cross-regional replication.After the epidemic, the operation of the offline stores was mature, the cost decreased, and the efficiency of the supply chain continued to upgrade. It is expected to contribute profit increment to the three squirrels in the long term and maintain the “strongly recommended” rating.On the same day, Dongxing Securities also released a research report that during the epidemic, online consumption habits conflicted and the three squirrels took offline stores to accelerate.In the long run, supply chain management capabilities are the core, and the three squirrels are constantly strengthening the construction of factories and warehouses.The company’s Q1 revenue growth is less affected, and the profit side is mainly due to increased costs and management expenses.In the next 2-3 years, the three squirrels online will mainly expand in Dublin, with a net interest rate between 2% and 5%.The three squirrels currently have rapid offline sales growth and excellent quality, and continue to be optimistic about the construction of their new retail channels.Sauna, Ye Wang Wang Ziyang Picture Source Editor Zhu Fenglan Proofreading Wu Xingfa

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