reports
- Jeanie Chen
Seven & i Domestic C-Stores Poised for Accelerated Growth
The strategies of the moaty domestic convenience-store business, Seven-Eleven Japan, presented at Seven & i’s result meeting reinforced our conviction that SEJ is poised to regain sales momentum, while profit growth will pick up after the negative impact of a cut in franchise fee charges disappears in 2019. While management indicated that it is set to beat its medium-term target of JPY 450 billion in operating profit for 2019, given the contribution of the Sunoco acquisition, we consider the.....
- Jeanie Chen
Reallocation of resources to high-margin convenience-store business is...
We are raising our fair value estimate for narrow-moat Seven & I to JPY 4,950 from JPY 4,800 to reflect changes in our assumptions, mainly for the domestic (7-Eleven Japan, or SEJ) and U.S. (7-Eleven Inc., or SEI) convenience-store, or c-store, businesses, including impacts of Sunoco acquisition. We think the potential upside lies in the transformation of the U.S. c-store business model and industry consolidation, as well as enhanced profitability of the domestic c-stores through a revamp of...
- Jeanie Chen
Reallocation of resources to high-margin convenience-store business is...
Narrow-moat Seven & i Holdings' second-quarter earnings came in slightly above the company’s guidance and our expectation despite unfavorable weather during the peak season of domestic convenience stores. Solid sales of its 7-Premium private label line along with improved comps of the overseas C-store business and healthy growth in specialty-store business helped closed the earnings gap in the second quarter. We have finetuned our earnings forecasts, lowering profit estimates of C-store and .....
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