T.h.capital publishes investment Report today to maintain a rating as a stock holder

Summary: Check the latest quotes Beijing time August 14 Evening News, investment company T.h.capital today issued Investment Report, maintain Dangdang stock (Nyse:dang) hold rating. The following is a summary of the report: When the US stock market opens on the eastern time of August 15

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Beijing time August 14 Evening News, investment company T.h.capital today issued Investment Report, maintain Dangdang stock (Nyse:dang) "Hold" rating.

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

When the U.S. stock market opened in the eastern time of August 15 (Beijing time August 15) released the second quarter of fiscal year 2013, and on the same day 7:30 A.M. (Beijing time 7:30) to hold a earnings conference call.

We expect that when the second-quarter results will be at least the same as Wall Street's expectations, revenue forecasts for the third quarter will also reach Wall Street expectations, mainly thanks to continued implementation of the market platform strategy and a relatively stable competitive environment. We believe that when the second quarter gross margin will continue to rise, and continue to the second half of 2013 and the entire 2014 years. In addition, we believe that when mobile applications can also make progress, mobile will eventually become the other revenue channel when. But as the sustainability of profitability increases remains uncertain (such as when a competitor launches a price war to disrupt the plan), we continue to maintain a "holding" rating as a stock.

Price wars tend to calm or boost profitability: In general, the BoE launched a massive promotional campaign in June for the anniversary, making the second quarter a year of high price wars. In the second quarter of this year, we did not see a big price war except for a few days of anniversary promotions. The main reason may be: 1 in order to compete for market share, the main manufacturers have already burned too much money; 2) price cuts have bottomed out and a substantial price cut could affect the relationship with suppliers. To this end, we believe that when the second quarter gross profit margin will be basically flat, about 17.8%, and the first quarter is 17.2%, the same period was 13.1%. In the future, if the price war continues to stabilize, believe that when profit margins will continue to rise.

Revenue for the second quarter is at least as expected: We believe that continued promotional activities and optimization of product categories will continue to drive traffic growth, boosting revenue growth in the second quarter. In the second quarter, the number of independent users of Dangdang station increased 45%, the chain growth of 20%. In addition, the new start-up of the Flash purchase and private label business will also promote traffic growth.

Performance expectations: We expect the deficit to be diluted at least as much as Wall Street's expected $0.15 trillion per share in the second quarter, with gross revenues at least as much as the 239.3 million-dollar guideline, up from Wall Street's projected $237 million trillion.

Third-quarter results: we expect that when the third-quarter guidance revenue is expected to be at least the same as Wall Street's expected $252.9 million trillion (up 23.4%), it may exceed that expectation, and we expect $256.1 million trillion.

Mobile will become another sales channel: The first quarter, when more than 1/3 of the traffic, and about 10% of the orders from mobile terminals. We believe that the ratio will continue to rise in the second quarter. While PCs are still the main channel for online retailing, more and more users are starting to use mobile channels when investment and promotion on mobile apps will ensure that this trend is captured.

Valuation: We continue to maintain the "hold" rating of Dangdang stock. (Li Ming)