Days Hao Capital issued investment Report, will be when the rating to buy

Summary: View the latest quotes Beijing time August 7 Evening News, investment company Days Hao Capital (T.h.capital) released an investment report today, the Dangdang stock (Nyse:dang) rating from holding to buy, while maintaining a 17 dollar target share price unchanged. The following is a report to see the latest quotes

Beijing Time August 7 Evening News, investment company Days Hao Capital (t.h.capital) issued an investment report today, the Dangdang stock (Nyse:dang) rating from "Hold" to "buy", while maintaining a 17 dollar target share price unchanged.

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

When the U.S. stock market opened on August 14 (Beijing time August 14 night) released the second quarter of fiscal year 2014. We expect the second-quarter results to be higher than Wall Street's expectations, while the third-quarter results are expected to coincide with Wall Street's expectations. Mainly because when the market strategy, product category management, and stable market competition environment are still being implemented. Therefore, we anticipate that in the foreseeable future, when it will continue to maintain its profitability. Given the optimistic short-term and long-term outlook, we will be when the stock rating from "holding" to "buy", while maintaining a 17 dollar target share price.

Sustainable profitability: From 2010 to 2012, when it was expanding to other product categories, its profit margins were affected by the Low-margin self-procurement business. But after a reorganization (the self-procurement business and market platform model), when profit margins have started to rise after 2012 years, mainly because the market platform business has grown faster than the self purchase volume business (excluding book business). In terms of product categories, when the strategy is implemented smoothly, mainly includes three aspects: 1 consolidation of destination categories (destination categories), including media products and apparel. When in the media product market performance is very stable, almost no threat. and clothing business growth rate faster than the overall market platform business performance. 2 Strengthen the competition category, including mother and child products and household products. These product categories are expected to develop as the destination category for the product. 3 other categories, these categories of products help when restoring profitability. We expect that when operating profit margins for fiscal 2014 will reach 1.4%, fiscal 2015 will rise to 2.7%. As for the second quarter of the 2014 fiscal year, we expect that when each share of diluted earnings will reach $0.04 trillion, higher than Wall Street's expected $0.02 trillion.

Second-quarter results or higher than Wall Street expectations: Thanks to product restructuring and class optimization, we expect net revenue in the second quarter to be at least consistent with corporate guidance (up 30% per cent), above Wall Street's expected $313.46 million trillion (up 28.8%) and our expected $312 million trillion. As for the fourth quarter's forecast, we expect to be the same as the Wall Street forecast when it will give a 30% per cent increase in revenue forecasts.

Valuation: We have adjusted the Dangdang stock rating from "Hold" to "buy", while maintaining the 17 dollar target share price unchanged. (Li Ming)