Transformation requires more time
? Gome reported FY21 revenue of Rmb46bn, up 5.4% yoy, the first yoy revenue increase
in the past five years. The net loss for the year w as Rmb4.4bn, narrow ing from a net
loss of Rmb7.0bn in FY20, but still below our expectation, because of slow er revenue
grow th and less effective cost control.
? In FY22F, Gome expects its offline retail sector to turn profitable and the net loss of the
online platform FUN to be limited to Rmb1.5bn, resulting in a net loss of less than
Rmb1bn for the Group.
? Gome plans to start the IPO process of Anxun Logistics in 2H22F.
? Reiterate Hold w ith a new DCF-based TP of HK$0.51, since Gome is still in the
transformation period. We expect the Company to turn to profitable in FY24F.