Macalline (601828): Exploring smart mall solutions to help traffic conversion, optimistic about new home retail prospects

Macalline (601828): Exploring smart mall solutions to help traffic conversion, optimistic about new home retail prospects
Recent situation of the company We have recently studied the Red Star Macalline Shanghai Smart Mall, and conducted in-depth exchanges with the company on new home furnishings. The main points are as follows: Comment 1. Rely on cutting-edge technology to optimize smart mall solutions to help traffic conversion.The characteristics of home consumption are short-term and long-term. For the elderly, the effective acquisition and accurate conversion of traffic become the key for home stores.Red Star Macalline has been at the forefront of the industry in the construction of new home retail. Its smart mall solution is equipped with face recognition, Internet of Things and other technical means, which can achieve accurate passenger flow statistics, and accurate identification and trajectory analysis of a single customer.Elderly people can carry out targeted shopping mall optimization and intelligent recommendation, and finally they will be able to become resident merchants and improve customer conversion efficiency. 2.618 increased by 35% every year, and multi-marketing helps traffic acquisition and conversion.According to the official data disclosed by Macalline, in the 618 promotional activities in 2019, Red Star Macalline achieved a breakthrough of US $ 4.7 billion, an annual increase of 35%.Breakthroughs, Red Star Macalline has frequently made efforts in marketing. This time 618 also repeated multiple marketing tools to effectively improve traffic conversion and store-to-store conversion rate. First, it joined hands with today ‘s headlines to increase online exposure and achieve traffic introduction;It is an explosives store that contains 330,000 selected sharps, and uses group buying to detonate traffic, attracting 240,000 people nationwide. Third, it leverages community marketing to cover more than 1,000 newly opened communities and second-hand housing groups to achieve accuracy.Drainage will eventually increase the number of billers by 30% each year, and the number of new members spending more than 19% each year. 3. Join hands with Ali to lead the business model reorganization of home furnishing 苏州桑拿 stores.Recently Alibaba to 43.The US $ 59.4 billion fully subscribed for Red Star Holdings’ exchangeable bonds. The two parties will build new retail stores, e-commerce platforms, logistics warehouse installation and service provider systems, consumer finance, composite formats, payment systems, and information sharing in the future.Carrying out strategic cooperation is expected to accelerate the implementation of Macalline’s new retail strategy and promote the transformation and reorganization of the business model of the home store.We believe that the company, as a leader in domestic home furnishing stores, has clear growth logic and a strong moat. With the support of Alibaba’s new retail resources, it is expected to continue to benefit from the increasing concentration of the home furnishing industry industry. It is currently deviating from the bottom range, and the actual controllers and executives have recentlyThe promotion of the team’s holding plan also shows long-term growth confidence. Estimates suggest that we maintain 2019 / 20e EPS 1.43/1.59 yuan.The current 2019e deduction of non-net profit corresponds to 15 times P / E for A shares and 7 times P / E for H shares.Maintain Outperform rating and target price of RMB 15 yuan.3. Corresponding to 18 times P / E of non-net profit deduction for 2019e, 20% space; Hong Kong stock target price of HKD 9.0, corresponding to 2019e deducting non-net profit 10 times P / E, 34% space. The risk of same-store growth was less than expected; the real estate market continued to decline.