GS 高盛：China－Retail -

Shopping for Winners; Initiate on 4 retailers; Parkson Conv.

02.09 51页 February 9, 2007 英文

Table of contents
Overview: Buy Parkson, Sell Suning, Hold Gome & Golden Eagle 2
China’s retail market: An opportunity not to be missed 8
Department stores v CE retailers: Same model, different results 9
Valuation summary: High P/E multiples justified by strong cash flow generation and long-term growth outlook 15
Parkson (3368.HK; Conviction Buy): Our top pick 20
Golden Eagle (3308.HK, Neutral): Strong regional operator, but more execution risk in the near term 30
Gome (0493.HK, Neutral): Strengthening industry leadership, but tough challenges to create a full productivity loop 35
Suning (002024.SZ; Sell): Earnings overly dependent on supplier promotional income; valuation vastly stretched 42
Disclosures 48