Maintain the only stock buy rating and 191 dollar target share price unchanged

Deutsche Bank today released its research report, maintaining the nyse:vips stock "buy" rating and the 191 dollar target share price unchanged.

The following is a summary of the report:

China's remaining inventory opportunities will continue to grow, but will not shrink as many brands deploy better inventory controls, the company's management said in a meeting in Shanghai in Thursday morning. Corporate management appears to be confident of the current operating conditions and future growth prospects.

The company's management has recently communicated with several major brands, most of whom are reluctant to take excessive inventory restrictions for competitive reasons, which could lead to shortages during the peak season. As a result, the company expects that the vast majority of its brands will still need to rely on a flash-purchase platform such as the only product to clear their quarterly inventories.

Only product management found that mobile devices will be promoted only goods will flash business of a powerful platform. Because the mobile phone can be placed in the pocket at any time, it is very fit with the only product of the flash-purchase characteristics. In some transactions, only a part of the product inventory only 3 to 5 pieces, making buying time more urgent. As we have said in our previous study, we believe that only about 40% of the turnover in April this year will come from the mobile end, which is expected to exceed 50% by the end of this season.

We maintain the "buy" rating and the 191 dollar target share price. The target price base includes: PEG (ratio of relative earnings) to 1 time times, the 2014 to 2016 fiscal year earnings per share annual growth rate of 73%.

Key risks: Slow growth in user traffic and inability to successfully integrate the Le Bee network.