Goldman Sachs maintains only goods will buy rating target price to 84.20 USD

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Beijing Time November 12 Evening News, Gaoshengzhi issued an investment report to maintain only the stock (nyse:vips) "Buy" rating, the target share price from 83.60 U.S. dollars to 54.20 dollars.

The following is a summary of the contents of the report:

Only the 2013 fiscal year in the third quarter net revenue of 383.7 million U.S. dollars, an increase of 146.1%. Based on non-US GAAP, net profit is $15.1 million trillion, higher than we expected.

Performance Analysis:

1 net revenue rose beyond the industry average: only the third quarter net revenue rose 146% Year-on-year, while the second quarter's revenue rose 160%, much higher than the overall online retail market 42.4% and the consumer market 68.1%. The number of active users reached 4 million, year-on-year growth of 131.7%, the chain growth of 15%. Order quantity of 11.7 million, year-on-year growth of 115.6%, the chain growth of 6%, the average sales price (ASP) for the RMB 200 yuan. Only the goods will expect revenue in the fourth quarter to grow 94% to 97% year-on-year.

2 Gross Profit margin: The third quarter gross profit margin of 24.2%, the year-on-year growth of 1.9%, the chain growth of 0.7%. Excluding market platform factors, only goods will self operating business profit margin growth rate of 0.2%. Currently, the only product partners include 3,834 suppliers, covering 6,500 brands, of which 900 brands are exclusive partners.

3) Marketing and administrative expenses are stable, the rate of performance expenditure fell 2.5%, the chain fell 0.7%: We expect that the warehouse area will be increased from 300,000 screens to 500,000 square meters in the next year. The improvement of performance capability will enhance operation efficiency and enhance the user experience.

4 Operating profit margin increased by 1.2%. Our operating profit margin for the 2014 fiscal year is expected to be 1% higher than Wall Street's expectations.

Valuation: We continue to maintain the only stock "buy" rating, the target share price from 83.60 U.S. dollars to 54.20 dollars.