Jaffray will increase its rating target price by 26 USD

Beijing time November 20 Morning news, the U.S. investment company sent Jay Today published research report, the only product will (Nyse:vips) stock rating maintained in the "overweight" (overweight) unchanged, the target price of 26 U.S. dollars.

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

Conclusion：

Only the third-quarter revenue was in line with Wall Street analysts ' average forecasts, and the battle net for fourth-quarter revenues also matched expectations. Revenue grew slightly as executives decided to reduce their focus on group-buying operations, resulting in lower growth in orders and new customers.

We are encouraged by the decision of the quality management to expedite the pace of construction of the warehouse. We believe that the investment activities being carried out by the Commodities Council will provide support for the company's future growth. We continue to believe that the only product is moving towards the goal of becoming a leader in China's E-commerce market, which will provide a greater opportunity than the company's initial goal of becoming a market leader.

Profit margins continue to be weak, but in spite of the recent negative, the future is likely to prove worthwhile, because it will be gaining a share in the young Chinese e-commerce market. We reiterate our "overweight" rating and the target price of USD 26 for the only stock.

-third-quarter revenue was basically in line with expectations, margins rose less than the second quarter;

Only the third-quarter revenue of the goods will be 883 million U.S. dollars, compared to Wall Street analyst average forecast of 870 million high 1.5% The U.S. depository receipts for each share not in accordance with the United States GAAP income of USD 0.08, it is likely to disappoint investors, largely in line with the average Wall Street analyst's expected $0.07 trillion, but not just 84 per cent year-on-year, compared with the US General accounting standards, which grew 245 per cent year-on-year in the second quarter.

The only product would expect a fourth-quarter revenue of $1.2 billion to $1.22 billion, which is in line with the average Wall Street analyst's expected $1.2 billion trillion, but we think this outlook should be 3% higher than the impact of the group buying business. The product will be expanding its technical team and infrastructure, improved mobile sites and enhanced performance, especially in the "last mile" delivery area; We believe that the profit margin will be increased in 2015, but the increase will be limited because the company is forced to compete with larger rivals and Alibaba Group (Nyse:baba) and Jing Dong (NASDAQ:JD) and so on.

-"Double 11" sales compare with expected performance Outlook:

Only product will say, "Double 11" period of the company's revenue year-on-year increase of about 300%, far higher than the fourth quarter revenue year-on-year growth of 85% of the forecast. We believe that there are two factors that lead to the emergence of such differences. First, the rising popularity of "double 11" in the Chinese market is likely to boost sales growth on that day, and second, we believe that the only product will be conservative in anticipation of the fourth-quarter results.

In our view, only the fourth quarter revenue growth may be slightly above the company's expected limit, but will be far below the "double 11" increase.

-Our views on the only product will change:

We believe that the only products that are committed to the dominance of China's flash shopping, cosmetics and apparel and the overall E-commerce market are progressing well because the company has greatly improved its mobile platform and performance capability, especially in the "last kilometer" delivery area.

-The risk of reaching the target price:

The time for a severe slowdown or slowdown in economic growth; Internet and e-commerce consumers are slower than expected, security of online payments, increased delivery costs, competition. (Tangfeng)