Chongqing Department Store (600729) released a comment: Controlling shareholders’ mixed reform participants determine the business potential pending release

Chongqing Department Store (600729) released a comment: Controlling shareholders’ mixed reform participants determine the business potential pending release
The controlling shareholder and the investor confirmed that Wumart & BBK participated in the mixed reform of Chongqing Department Store, and the 北京spa会所 controlling shareholder “Commercial Group” mixed ownership reform plan came into effect: 1) The trading company group has established a board of directors, confirming that the proposed date for the mixed ownership reform of the trading company group is WumartAnd BBK Group.After the completion of the mixed reform, the shareholding structure of the trading company group is Chongqing SASAC / Wumart Group / BBK Group respectively holding 45% / 45% / 10% of the shares without actual controller; 2) Indirect ownership of mixed reform investors by Chongqing Department Store listed companyIs 25.52 yuan / share (Shangshe Group holds 45 listed companies.05% equity); 3) The trading company group intends to issue a comprehensive offer to all shareholders of shares without trading conditions, the offer price is 27.16 yuan / share.The main purpose of this tender offer is to obtain sufficient options for investors, not to terminate the listing of Chongqing Department Store.The tender offer plan will be released after the strategic agreement is signed for a formal agreement; 4) The trading company group is a commercial entity affiliated to the Chongqing SASAC. According to this distribution announcement, the trading company group’s revenue in 2017 was 49.1 billion yuan and net profit was 710,000 yuan. The three parties collaborated to conspire to change the Southwestern Retailing Bureau. According to the data from the Chain Store Management Association, in 2018, the trading company group, Wumart Group and BBK Group ranked 8th and 14th among the top 100 chain stores, with annual sales scales of 675/483/390.Zhao, with 413/1055/686 stores, of which the Shangshe Group’s stores are mainly concentrated in Chongqing, Sichuan and Guizhou; BBK Group has deeply cultivated markets such as Hunan, Guangxi, and Jiangxi. The coordinated development of the three will become an important retail market in the southwest.Power (According to the requirements, the war investment party needs to form a regional complement to the main distribution of Chongqing Department Store and promises to entrust Chongqing Department Store to host related businesses in the same industry competition area). The consolidation and consolidation of leading southwestern regions, the mixed-controlling shareholder landing or the release of operating vitality. By the end of 1Q19, Chongqing Department Store had a total of 316 stores of various types, with an operating area of more than 239. It is an important commercial leader in the southwestern region.In 18 years, the company’s operating profit margin was only 3.01% (Excluding immediate consumption financial investment income only 2).28%), lower than Ewushang A (8.39%), Hefei Department Store (4.21%) and other regional retail companies.After the mixed reform is completed, listed companies are expected to gradually release their operating vitality.Temporarily maintain the forecast of net profit attributable to mothers for 19-21 years to 9.1/11.1/12.700 million yuan (of which 3/3 of investment income is contributed by immediate 武汉夜网论坛 consumer finance.5/4.40,000 yuan), the evaluation of the main retail business and immediate consumer financial company segments, a reasonable value of 39 yuan / share, corresponding to 19 years 17 years.4xPE, maintain “Buy” rating. Risk reminders: Macroeconomic downturn and continued weak consumption; migration of business districts, weakening of the ability of major stores to gather customers; and strengthening supervision of the consumer finance industry.Bad debt risk broke out; mixed improvement was lower than expected;