Jaffray released research report today to maintain Dangdang neutral rating

Summary: View the latest quotes Beijing time August 17 Morning news, the U.S. investment company sent Jay (Piper Jaffray) today released a study, the Dangdang (Nyse:dang) stock rating maintained in neutral (Neutral) unchanged, and its target price from 5.50 U.S. dollars to 1

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Beijing time August 17 Morning news, U.S. investment company Piper Jaffray published a study today, the Dangdang (Nyse:dang) stock rating remained "neutral" (Neutral) unchanged, and its target price from 5.50 U.S. dollars to 10.

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

Strong second quarter performance;

Conclusion：

We keep the Dangdang stock rating unchanged, mainly because of the lack of predictability in earnings over the next few quarters. While we believe Dangdang will continue to benefit from the booming China E-commerce industry, the company is in the early stages of transitioning from an online bookstore to an integrated online shopping mall.

We expect that in this transition phase, Dangdang will continue to face fierce competition from other third party market practitioners who have better established their position. We believe that this competitive situation will lead to a variable in the revenue and expenditure structure of Dangdang. Based on revenue forecasts for fiscal year 2014 and 0.63 times times the market rate, we've raised the target price of Dangdang from 5.5 to $10.

-second-quarter results were solid: Dangdang's second-quarter revenue was 243.3 million dollars, slightly better than our expected $242 million trillion and the average Wall Street analyst's expected $236 million trillion. Dangdang's earnings per share in the second quarter were $0.13 trillion, better than we expected-$ 0.19 trillion and Wall Street analysts ' average forecast of $0.15 trillion.

-Active customer number and order quantity steady growth: Dangdang's active clients in the second quarter reached 7.6 million, up 29% from a year earlier, up 3% from 7.4 million people in the previous quarter. Dangdang's total order in the second quarter was 15 million, up 25% from a year earlier, up 1% from the previous quarter. Dangdang's gross profit margin for the second quarter was 17.1% per cent, up 400 points from a year earlier, mainly because of revenue growth from higher-margin markets and the firm's stringent cost controls during the quarter.

We expect Dangdang to provide additional support for performance spending in the second half of 2013, with the expansion of its third-party market operations, partly offsetting the expected growth in marketing spending.

-Continue to shift to market operations. Dangdang's third-quarter market total turnover (GMV) grew 178% to 788 million yuan, slightly above our expected 780 million yuan. Dangdang in the second quarter of the other income of 64 million yuan, lower than our expected 94 million yuan, mainly because of conversion rate (take rate, refers to e-commerce companies from the turnover of the proportion of income) as 8.1%, lower than our expected 12%; The income of media and commodities exceeded our expectations.

-Adjust performance expectations: We will be dangdang 2013 fiscal year revenue forecast from RMB 1.048 billion yuan to 1.054 billion yuan, mainly because the company's second-quarter performance exceeded expectations, and market growth faster than expected.

Dangdang expects the third-quarter revenue to be 1.584 billion yuan (about 258 million U.S. dollars), basically in line with our expectations, slightly above the 253 million dollars that Wall Street analysts had previously expected. We estimate that Dangdang's 2014 fiscal year revenue will be 1.288 billion U.S. dollars, higher than the previous forecast of 1.24 billion U.S. dollars, mainly because we assume that the market business revenue growth, and the renminbi appreciation against the dollar.

Target price risk: Economic and retail sales growth slowed, internet and e-commerce adopted slower than expected, lack of online payment security, cost of delivery growth, competition. (Tangfeng)