The sustainability of the strong expansion of Suning Appliance

 Suning Appliance: a strong expansion of the sustainability of
2008   07   05   17:03 China Business
2004   7 21, a company called Suning Appliance (41.71,0.10,0.24%, right) (002024 . SZ) Shenzhen Stock Exchange log home appliance chain enterprises SME board, this time Suning is not impressive. Four years later, Suning was riding companies.
Sun Weimin, president appliances in the ;
four years, Suning's expansion of the total equity shares from 9316 to 1.496 billion shares from 9.107 billion yuan of business revenue, to 1.523 billion yuan. the old fish, swallowed after the capital market has become a big fish nutrition. But the fish, can continue to grow at this speed?
expansion is not in the slightest slack
the eyes of the buyer agency, Suning Appliance can still achieve in the next few years, rapid growth has brought impressive returns to investors, is their greatest concern. This means that the pace of Suning's expansion can not have the slightest slack. Some analysts that if Suning can not maintain the established rate of expansion, or significant changes in market, industry structure, will cause great damage to the development of Suning.
recently adopted additional programs, financial success was 2.43 billion yuan Suning, which sum will be used to open 250 chain stores, construction, total construction area of 41,400 m2 logistics center in Shenyang, Wuhan, buy and Shanghai Far East, South flagship store flagship store. Shenyin analysts believe that the medium-term development strategy and Suning close anastomosis. in the old rivals Gome (0493.HK) sustained way through high premium on acquisition Yongle, Dazhong, and triple after the re-acceleration of Suning's expansion pace, showing that the company developed its own confidence and not to external disturbances and focus on the development of stable self-attitude, Suning has 200 stores throughout the year capacity expansion plan.
Our high growth is still significant. gradually standardized, growth will continue to appear Suning is of almost no difficulty .
now is from the home appliance chain Suning Appliance Chain to 3C change. Suning 2008 and 2009 earnings per share is expected to reach 1.71 yuan and 2.41 yuan. Trade and industry analysts blue delphinium that Suning future performance of the main driving forces include: the extension is still strong expansion of scale and lower expense ratio under the 3C market expansion. its risk factors include: increased competition and market structure changes, the company same-store sales growth falls short of expectations, and lower revenue growth is expected at the same time, 3C market development there are some variables. While Suning forecast growth will slow down in 2009, but still blue delphinium that the next 6 to 12 months, Suning's share price increases of more than 30%.
rolling expansion or merger integration?
sound development model is promising Suning most organizations one of the core elements. But Compared with the old rivals Gome, Suning's performance in the capital or somewhat conservative.
We have realized that, to the times. Sun Weimin said Suning not without considering the consolidation through mergers and acquisitions to accelerate expansion of development: the right time to achieve faster development through mergers and acquisitions. The rolling speed of development is indeed the expansion subject to some restrictions, but the network configuration is more reasonable in the long term, the development speed and quality of economic growth may slow. efficiency advantage, but the scale does not necessarily mean efficient. If the scale of mergers and acquisitions to become the primary means of expansion, then the integration of the cost and effectiveness of the coincidence of network, information systems integration, store the length of the remainder of the lease, etc., must be be taken into account.
China Business Daily News: Li