Pacific Crown Pavilion "with industry flat" rating

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Beijing Time February 27 Evening News, the Pacific Crown Securities published a study today, to maintain the Orchid Pavilion set potential (NYSE:LITB) stock "with the industry flat" rating.

The following is the full report:

The quarter's performance was mixed, and revenue forecasts were lower than expected. The inflection point for revenue growth is expected to come in the second quarter, but we will remain on the sidelines until the Blue Pavilion set of potential energy proves its steady execution.

Earnings per share disappointing, but revenue performance better

The revenue for the quarter was $78.8 million trillion, higher than our estimated $76.1 million trillion, but some of the adverse changes in the apparel business and slightly higher than expected operating costs led to earnings per share of $0.10 trillion, worse than our projected-0.04 dollars. Because of the competition in the wedding industry, the median revenue forecast for the first quarter was $79 million trillion, below our estimated $81.4 million trillion. But the industry is expected to keep growing overall.

The inflection point of growth will come in the second quarter, but the challenge will remain

The pavilion is expected to see an inflection point in revenue growth in the second quarter and will accelerate growth, but we believe some of the business challenges will remain. The intense competition in the wedding industry means that discounts are needed. The extent and duration of this discount activity, and the possible response of competitors, is still poor. On the positive side, mobile revenues are growing at a rapid rate of 5 times-fold growth, which is expected to be the focus area and growth driver for 2014.

A reasonable value of 9 dollars per share

With 2014 price and cost uncertainties, we will remain on the sidelines even though the company expects revenue to grow in the second quarter. While optimistic about the company's new management team members, we would like to see strong performance for several quarters. We think that the reasonable value of the Orchid Pavilion is 1 times times the ratio of enterprise value to revenue, equivalent to about 9 dollars per share.