Dangdang Clothing "New Flash purchase" channel officially online

Absrtact: June 18 Electricity June 17, Dangdang in the shares of the electricity quotient in a solo show, the plate rose more than 8%, to 6.8% Close, from the end of May has been rising 30% consecutive. The same day, the United States well-known investment website The Motley Fool published titled "Dangdang Shares ultra-low prices do not buy

June 18 Electricity June 17, Dangdang in the shares in the electricity quotient of a solo show, the plate rose more than 8%, to 6.8% Close, from the end of May has been a continuous rise of 30%.

The same day, the United States well-known investment website The Motley Fool published titled "Dangdang Shares ultra-low prices do not buy regret?" (Commerce Dangdang is on sale:buying opportunity?) ) Analysis of the article, that compared to the only goods will, Beijing-east and other electric dealers on the market value of tens of billions of dollars, the market value of only 900 million U.S. dollars Dangdang is currently in a serious underestimate the value of the state, there is a big increase in space.

Analysis refers to the recent dangdang by investors mainly from the guoqing (Micro-BO) published a group of "earnings behind the figures", and clothing "new Flash purchase" channel on line.

According to Guoqing in Weibo, the first quarter Dangdang real profit of 19 million (due to exchange loss 17 million earnings earnings 2 million), and last year four quarter flat, while the shoe bag growth rate of up to 116% (last year, the clothing tail goods flash purchase drive Dangdang total turnover 10.2 billion). and June Dangdang clothing "new Flash purchase" channel officially on line, guoqing again stressed Dangdang growth confidence, he said that the future growth rate will be faster than the only product will be inevitable.

The full text is summarized as follows:

From March to May this year, China's electricity business Dangdang shares fell nearly 37%. Many investors seem to be more optimistic about the strong performance of the only products.

However, compared to the only product will and Jingdong, now may be a good time to buy Dangdang, because in fact, Dangdang high growth situation is impressive, in the early oversold after the current stock price more attractive.

Upfront investors seem dissatisfied with Dangdang's performance, but that does not mean that the reality is the opposite: Net revenue grew by more than 30% in the first quarter of 2014, close to $280 million trillion, while platform revenue surged 103% per cent to $190 million trillion in GMV last year. Up to 8.6 million active users in the first quarter, while new users increased by 2.8 million.

Dangdang's gross profits continued to grow steadily: Gross profit margins reached 18.2% in the first quarter, up from 17.2% a year earlier. Net profit is less, but it is a far cry from the more than 10 million dollar losses of the same period last year.

Dangdang is from the online bookstore started, but now has successfully expanded to other areas, especially in the market space for a wide range of clothing, baby, home and other categories to increase exerting force.

E-commerce in the world's development has shown a vast space, great potential, exciting. China is the fastest-growing country, which means that Dangdang maintains the correctness of the strategy and has ample opportunities in the coming years to maintain rapid sales growth and improve profitability.

Importantly, according to PS calculation, compared to the only product will and Jingdong, Dangdang's current stock price "too much value." Beijing Shi Sales rate of 3, only goods will be 4.8, and when only 0.9! (Note: The market rate, that is, market value on sales.) Because most of the electricity dealers are less profitable, the P/E ratio mostly doesn't make much sense. As a high growth industry, the market turnover PS is more commonly used in a more simple way of valuation.

As an Up-and-comer and a new-jin listing, Jingdong and the only goods will attract investors too much attention, and missed the value of Dangdang: Considerable high growth, sustained growth in profitability, and far lower than the competitor's valuation.

By contrast, Dangdang's share price is so tempting that some investors are beginning to realise the opportunities for Dangdang. It's not too late, now is a good time to buy Dangdang.