<Meeting takeaways> GOME (493 HK) held an investor call on operating performance for Jan 2022
- In Jan 2022, GOME scored >40% y-o-y revenue growth. Online platform secured c.70m monthly active users and 3.5m average daily active users
- SKUs expected to reach 5m by end-2022 (Jan 2022: c.2m), with a target of 10m SKUs in three years
- Proportion of third-party business also reached 48% via effective business cooperation. It aims for >50% over the medium-term
- GOME is focusing on ‘household consumption’ and continues to fine-tune its product-mix to better cater for full-set solutions. Additionally, GOME continuously enhances its overall service quality via strict quality control and providing more user-friendly video shopping guides to better cater to consumer demand and resolve the pain-points.
- The company currently targets to realize a profit for 1Q22, and aims to serve 50m-100m households during 2022.
Our View
- GOME should have achieved some good consumer feedbacks by Jan 2022. Given that its offline transformation is still in the process, and the implementation and execution of the new retail strategies could take time to optimize, we continue to await more solid results from its efforts ahead.
- Maintain HOLD with TP unchanged at HK$0.75