1H13 earnings edged up 0.4% to RMB340m, in line.
2H13 could sustain SSSG similar to 1H13’s 3.8%, plusaccelerated expansion to open 60 stores. Extra efforts tostrengthen merchandising capabilities and operating efficiencycould also benefit longer term progress.
Wumart should stay along the right track for better market shareand operating matrix, yet we are not too hopeful on its neartermearnings prospect. At 17% premium to our TP of HK$12.73(on 20x rolling PE), it is Fully Valued.