Beijing Wangfujing Department Store (Group) Co., Ltd.: Company Profile and SWOT Analysis by ICDResearch

VIEWS: 27 PAGES: 27

More Info
									Beijing Wangfujing Department Store (Group) Co., Ltd.

_________________________________________________________________________________



Beijing Wangfujing Department                                                      Financial Snapshot

Store (Group) Co., Ltd.                                                            Operating Performance

Fast Facts                                                                         The company reported revenues of US$2,056.97
                                                                                   million during 2010, with a CAGR of 26.05% during
                                       253 Wangfujing Street, Beijing,             2006–2010. Its revenue grew at an annual rate of
Headquarters Address
                                       100006,People's Republic of China           26.77% over the previous fiscal year. In 2010, the
                                                                                   company recorded an operating margin of 4.68%, as
Telephone                              + 86 10 65125960
                                                                                   against 4.67% in 2009.
Fax                                    + 86 10 65133133
                                                                                   Revenue and Margins
Website                                www.wfj.com.cn

Ticker Symbol, Stock Exchange          600859, Shanghai Stock Exchange

Number of Employees                    10,973

Fiscal Year End                        December

Revenue (in US$ million)               2,056.97

Revenue (in CNY million)               13,946.23




                                                                                   Return on Equity
SWOT Analysis                                                                      The company recorded a return on equity (ROE) of
                                                                                   10.69% for 2010, as compared to its peers, Parkson
Strengths                              Weaknesses                                  Retail Group Limited (Ticker: 3368), Nanjing Central
                                                                                   Emporium Co., Ltd. (Ticker: 600280) and
Broad product portfolio                Closure of operation                        Takashimaya Company, Limited (Ticker: 8233), which
                                                                                   recorded ROEs of 21.98%, 7.24% and 2.69%
                                                                                   respectively. The company reported a net profit
Strong financial performance           Limited geographic presence                 margin of 4.68% in 2010.

Strong market position
                                                                                   Return on Equity

Opportunities                          Threats
                                       Intense competition in first-tier Chinese
Expansion of Beijing consumer market
                                       cities

Growth of online stores                Shortage of talented manpower

Organic growth                         Specialty stores gaining strength




                                                                                   Liquidity Position

                                                                                   The company reported a current ratio of 0.82 in 2010,
                                                                                   as compared to its peers, Parkson Retail Group
                                                                                   Limited, Nanjing Central Emporium Co., Ltd. and
                                                                                   Takashimaya Company, Limited, which recorded
                                                                                   current ratios of 1.21, 0.84 and 0.79 respectively. As
                                                                                   of December 2010, the company recorded cash and
                                                                                   short-term investments of worth US$434.83 million,
                                                                                   against zero current debt. The company reported a
                                                                                   debt to equity ratio of 0.00 in 2010 as compared to its
                                                                                   peers, Parkson Retail Group Limited, Nanjing Central
                                                                                   Emporium Co., Ltd. and Takashimaya Company,
                                                                                   Limited, which recorded debt to equity ratios of 0.94,
                                                                                   4.69 and 0.42 respectively.




___________________________________________________________________________________________

Beijing Wangfujing Department Store (Group) Co., Ltd.                                                                      Page 1
- SWOT Profile
Beijing Wangfujing Department Store (Group) Co., Ltd.

_________________________________________________________________________________


TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Solvency ..........................................................................................................................................................12
      2.2.4       Valuation ..........................................................................................................................................................13
    2.3       Key Competitors ...................................................................................................................................................14
3     Mergers & Acquisitions and Partnerships ........................................................................................... 15
    3.1       M&A and Partnerships Strategy ...........................................................................................................................15
4     SWOT Analysis ...................................................................................................................................... 16
    4.1       SWOT Analysis - Overview ..................................................................................................................................16
    4.2       Strengths ..............................................................................................................................................................16
    4.3       Weaknesses .........................................................................................................................................................16
    4.4       Opportunities ........................................................................................................................................................17
    4.5       Threats
								
To top