JG Capital released a study today, reiterating Dangdang's overweight rating

Summary: View the latest quotes Beijing time August 14 Evening News, the U.S. investment company JG Capital released a study today, reiterated the Nyse:dang of Dangdang's stock rating, as well as the 13.50 dollar target share price. The following is the full report: We reaffirm

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Beijing time August 14 Evening News, U.S. investment company JG Capital released a study today, reiterated to Dangdang (Nyse:dang) stock "overweight" rating, as well as the 13.50 dollar target share price.

The following is the full report:

We reiterate the "overweight" rating of Dangdang stock, with a target price of 13.50 US dollars. The reasons are as follows:

Dangdang will report its first quarterly earnings in Thursday. We expect that Dangdang's performance and future performance forecasts will be strong. Since we May 17 the Dangdang stock rating from "neutral" to "overweight" since the Dangdang share price has risen sharply, dangdang stock price of 5.13 U.S. dollars. Despite the gross profit margin pressure over the past year, the profit margins have been raised in the last quarter as Dangdang's daily sales shifted to third-party businesses. We believe that Dangdang's product sales will be greatly improved and the cost will be optimized through the new discounted retail brand tail-end products, as well as the expansion and delivery capability of product categories. We reiterated our "overweight" rating on Dangdang equities and raised our target share price to $13.50 trillion. This is equivalent to 0.65 times times the enterprise value/revenue ratio.

In the second quarter, we expected Dangdang revenue to be 251 million U.S. dollars, an increase of 28% year-on-year, and a loss of 12 cents per share. Dangdang's previous forecast of revenue of 242 million U.S. dollars, analysts on average expected to be 237 million U.S. dollars, each share loss is expected to 15 cents. Our revenue is expected to include, the media business revenue of 988 million yuan, an increase of 28%, daily sales revenue of 463 million yuan, the year-on-year growth of 15%.

In the third quarter, we expected Dangdang revenue of 285 million U.S. dollars, an increase of 36%, a loss of 14 cents per share.

Dangdang in May 2013 launched the Flash purchase sales channel tail goods sinks. While it may put pressure on the profitability of Dangdang's main business, we believe the service will lead to good sales and revenue growth. In addition, this new service is likely to bring a large number of users to Dangdang, and build user loyalty.

Dangdang's mobile platform is growing fast, is currently ranked third in China's E-commerce mobile platform. At present, the performance of the implementation of Dangdang mobile end and the PC side is basically flat. In addition, Dangdang provides discount feedback to users who order goods using mobile devices. We believe that this strategy will help Dangdang gain a higher market share in the second quarter. (Zhang Fan)