Ask the expert to help me analyze how to operate the 600694 market outlook. thank you

1. The main reason why we are optimistic about the company is not only that the company's institutional reform is being actively promoted, but also that the governance risk is expected to be fundamentally improved; At the same time, compared with similar companies, the current value level of the company is seriously deviated from its leading position in the retail industry and the value of retail assets. Once the system changes fundamentally, the company will become one of the companies with the greatest valuation flexibility in the industry.

2. According to the company's operating conditions over the years, we always believe that it is necessary to objectively evaluate the company's management. We do not deny that its moral hazard has harmed the interests of tradable shareholders, but we must also admit that it is far-sighted in the company's development strategy and has excellent management, which has made great contributions to the company's development. Compared with peer companies, we think the company has obvious competitive advantage and successful management mode.

3. Due to the sharp drop in expense ratio, the profitability of stores in some areas has been greatly improved. Even if the impact of the financial crisis on revenue and profitability is fully considered, we still believe that the inflection point of the company's performance will reappear in 2009. According to preliminary calculation, we expect the company's performance in 2009-20 10 to increase by 76.2% and 5 1.6% respectively, and its earnings per share will reach 1.20 yuan and 1.82 yuan respectively.

4. Although the gradual release of corporate governance risks has troubled investors many times, perhaps we can express our views on investment companies in one sentence, that is, "Today is cruel, tomorrow may be cruel, but the day after tomorrow is beautiful, and we should not fall down before the dawn of the day after tomorrow".

5. According to the estimation of the company's asset value and the comparison with the valuation of the same industry, we think that the reasonable value of the company should be between 25.89 yuan and 34.65438 yuan +08 yuan. As the largest optimistic department store retailer in China, we believe that the company has a large margin of safety at present. Considering its strong competitive advantage and good prospects of the industry, it maintains the "overweight" investment rating.