Goldman Sachs keeps the target price unchanged

Beijing time July 3 Morning News, Goldman Sachs released its research report today, maintaining the Nyse:jmei stock "buy" rating and the 36 dollar target share price unchanged.

The following is a summary of the report:

News

Poly-Mei Products announced that from July 2014 will launch a new round of anti-counterfeiting activities, the monthly release of suppliers and Third-party business products audit reports, and expand the product spectrum analysis of sampling scope.

Analysis

In this event, the Poly-Mei excellent products plan to third party suppliers of product analysis of the proportion of sampling from 12% to 67%, covering its product market 17% of the inventory unit. The company started this larger-scale random sampling in June of this year and spent 60,000 of dollars to hire outside laboratories. The company will start to go into internal testing from July, saving costs.

The cosmetics of poly-Mei products account for about 82.1% of total net transactions in 2013. In addition to direct sales, third party merchants in their online fairs contributed 31.5% of the net total transactions in 2013.

Poly-Beauty products have completely controlled the supply chain of commodities, and will continue to strengthen the quality control of market operations. Prior to this, three businesses were penalized 5 times times the value of their products and were permanently banned because the product was not tested.

Product quality and reliability is China's cosmetics online shopping industry's biggest concern. Poly-Mei Products hope that through the "China Cosmetics Electronic Business Alliance" and a series of measures to upgrade the industry standards, this is China's first fake cosmetics set up a national alliance. We believe that these measures will help to improve the reputation of the United States in the eyes of consumers.

Influence

Our earnings forecasts, target stock prices and "buy" ratings have not changed. (PEI)