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MarketScreener Homepage  >  Equities  >  Hong Kong Stock Exchange  >  GOME Retail Holdings Limited    493   BMG3978C1249

GOME RETAIL HOLDINGS LIMITED

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Alibaba shops for hypermarket chain Sun Art in $3.6 bln deal

10/18/2020 | 08:51pm EST

* Alibaba to increase stake from 21% to 72%

* Shares of Sun Art in Hong Kong up more than 27%

* E-commerce firms continue expansion into offline retail

Oct 19 (Reuters) - Alibaba Group Holdings said on Monday it will invest $3.6 billion to acquire a controlling stake in hypermarket operator Sun Art Retail Group Ltd, gaining further ground in China's retail market.

The e-commerce giant is hoping to further leverage its digital presence to support Sun Art's 481 hypermarkets and three mid-size supermarkets in China. The move comes as Alibaba steadily expands its presence in China's offline retail sector, as growth in traditional e-commerce slows.

Alibaba, which already owned 21% of Sun Art through a unit, will raise its stake to around 72% through the acquisition of a similar stake in A-RT Retail Holdings, who owns 51% of Sun Art.

"As the COVID-19 pandemic is accelerating the digitalisation of consumer lifestyles and enterprise operations, this commitment to Sun Art serves to strengthen our New Retail vision and serve more consumers with a fully integrated experience," Alibaba Chairman and Chief Executive Officer Daniel Zhang said in a statement.

Alibaba added that Peter Huang would be appointed chairman of Sun Art on top of his current role as chief executive officer.

Shares of Sun Art soared more than 27% by lunchtime on Monday after Alibaba made the announcement.

Alibaba has expanded outlets across China for Freshippo, a supermarket chain that doubles as an online delivery service. Alibaba operates 214 Freshippo outlets as of its most recent earnings report.

It also has worked with mom-and-pop convenience store owners to offer technology and data analytics services.

Alibaba's e-commerce rivals in China have made similar forays into brick-and-mortar retail.

Online retailer JD.Com Inc runs a brick-and-mortar grocery store called 7Fresh.

Pinduoduo Inc, the fast-growing e-commerce site known for budget deals on bulk purchases, bought a stake in home-appliance retailer Gome Retail Holdings Inc in August for $200 million. (Reporting by Nikhil Kurian Nainan in Bengaluru and Josh Horwitz in Shanghai; Editing by Stephen Coates)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
ALIBABA GROUP HOLDING LIMITED -0.23% 270.11 Delayed Quote.27.35%
GOME RETAIL HOLDINGS LIMITED -2.15% 0.91 End-of-day quote.26.39%
PINDUODUO INC. -1.74% 141.05 Delayed Quote.272.95%
SUN ART RETAIL GROUP LIMITED -0.36% 8.24 End-of-day quote.-12.80%
All news about GOME RETAIL HOLDINGS LIMITED
10/19Alibaba shops for hypermarket chain Sun Art in $3.6 billion deal
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More news
Financials
Sales 2020 50 851 M 7 734 M 7 734 M
Net income 2020 -2 652 M -403 M -403 M
Net Debt 2020 13 036 M 1 983 M 1 983 M
P/E ratio 2020 -6,01x
Yield 2020 -
Capitalization 15 444 M 2 353 M 2 349 M
EV / Sales 2020 0,56x
EV / Sales 2021 0,53x
Nbr of Employees 29 047
Free-Float 42,8%
Chart GOME RETAIL HOLDINGS LIMITED
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GOME Retail Holdings Limited Technical Analysis Chart | 493 | BMG3978C1249 | MarketScreener
Technical analysis trends GOME RETAIL HOLDINGS LIMITED
Short TermMid-TermLong Term
TrendsNeutralBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus SELL
Number of Analysts 5
Average target price 0,54 CNY
Last Close Price 0,77 CNY
Spread / Highest target 14,3%
Spread / Average Target -29,8%
Spread / Lowest Target -67,3%
EPS Revisions
Managers
NameTitle
Jun Zhou Wang President
Da Zhong Zhang Chairman
Wei Fang Chief Financial Officer
Xiao Chun Zou Executive Director
Kong Wai Lee Independent Non-Executive Director
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