March 7 (Bloomberg) -- Suning Appliance Co., China’s biggest electronics retailer by market value, climbed the most in almost three years after its chairman said it will expand the range of products it sells beyond appliances.
Suning rose 8.6 percent to 10.10 yuan at the close in Shenzhen, the most since April 20, 2009. China’s benchmark Shanghai Composite Index fell 0.7 percent.
The Jiangsu province-based retailer plans to expand both online and to add physical stores and has started selling books, daily necessities and other products in addition to electronics, chairman Zhang Jindong was cited as saying by Sina.com. Zhang said he wants to transform Suning into a company that combines the strengths of Wal-Mart Stores Inc. and Amazon.com Inc., the news website reported yesterday.
“There’s likely a huge market potential in Suning’s expansion of its product line” which will give the company another source of revenue, Ouyang Jinjuan, an analyst at Wanlian Securities in Shanghai, said by telephone today. Ouyang recommends investors buy the shares.
Suning targets reaching 30 billion yuan ($4.8 billion) of online sales this year and will add five major procurement and sales centers to support its web effort, Zhang told China Daily yesterday. The company also aims to capture 20 percent of China’s home appliance market by 2020 when it is expected to grow to 3.1 trillion yuan, he said.
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