Vipshop will interpret the most crazy capital business myths

From the post-IPO share price break up to all the way up the hurricane, the only product will perform the most crazy business capital electricity myth. Yesterday morning in Beijing, the only product price exceeded 210 US dollars mark, the total market value beyond Qihoo 360 among the top four Chinese Internet companies.

>> Performance

Two years listed shares rose more than 30 times

During the trading day on the 21st, Vipshop opened higher at 198.63 U.S. dollars and ended the day at 204.20 U.S. dollars, gaining 5.59%. This is the first time that the price of the only product has stood at 200 U.S. dollars. As a result, the only product will surpass Baidu Baidu, becoming the highest share price in the shares. Not only that, Beijing yesterday morning, the continuous rise of the only product will be up 3.56%, the stock price exceeded 210 US dollars mark reached 211.46 US dollars, the total market capitalization of 11.95 billion US dollars; the same day, Baidu shares closed at 198.43 US dollars.

Based on this calculation, Vipshop ranked fourth in the market capitalization of Internet companies in China, surpassing Qihoo 360, and Tencent, Baidu and Jingdong ranked the top three. In the meantime, the capital markets also give Vipshop a high valuation, which is currently trading at a price-earnings ratio of nearly 170 times, much higher than 51 times Tencent and 40 times that of Baidu.

It is noteworthy that, two years ago in March 2012, the only issue will be listed on the market when the issue is 6.5 US dollars, but investors are not optimistic, resulting in once broken to 4 US dollars. However, as the only product in the domestic electricity supplier industry take the lead in profitability, and began to be recognized by the capital market, the stock price gradually picked up, becoming investors in the hearts of the "Ushimati".

In March this year, the only product will be released for the first time in 2013 annual earnings earnings report, followed by Vipshop shares soared to become the market value of once exceeded 10 billion US dollars mark "China stocks legend." In May, Vipshop released the first quarter of 2014 results as of the end of March this year, which is the only product for 6 consecutive quarters of profitability. Today, Vipshop's share price has continued to rise, has reached the issue price of nearly 33 times.

>> saying

Business itself is not innovative

"Even at $ 210 a share, there are still institutions in the US capital markets buying." Yang Donghao, the chief executive officer of Vipshop, said that the US capital markets are bullish on Vipshop because of the continued high growth of Vipshop's revenues and the market Leadership position.

However, in terms of Shen Meng, the executive director of Hongson Capital, the only reason for the high valuation of the Vipshop is its concept of discount products. Despite its popularity in the capital markets, high stock prices have some risks. First, because the current shares in Jingdong, Ali IPO drive, the electricity supplier plate has a catalytic effect, but can last for how long it remains to be seen; second is the discount name although operating costs lower than the physical store, but a substantial discount will Affect profitability.

"The only high price-earnings ratio will be the main market speculation funds." Shen Meng believes that the only commercial products will be threshold threshold is not high, and listed in Hong Kong, monopoly branded bags Milan station has similarities and differences, in short It is based on the psychology that Chinese consumers are keen to buy low-priced luxury goods that represent their status. Therefore, the model is reasonable but its business itself is not innovative. Therefore, the overvalued value does not have the long-term nature.

Beijing Times China Times reporter Jinghua Hu Xiaohong red