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Vipshop VIPS is a reasonably priced fast growth Chinese e-commerce giant September 8, 2017

Posted by deminvest in China stock, growth stock, investment, Single stocks, stock I own, stocks.
Tags: ,

I was right to chose BABA over VIPS two years ago.
But Now VIPS is so ridiculously cheap that I do believe it is definitely time to enter.

Trailing P/E 18.26
Forward P/E 1 10.36

Is so cheap for an hi tech company that grows that much:

Revenue (ttm) 9.65B
Revenue Per Share (ttm) 16.53
Quarterly Revenue Growth (yoy) 30.30%

This was said about its Aug Earning report:
“Vipshop’s total net revenue increased by 30.3% to RMB17.52 billion (US$2.58 billion) for Q2 2017 compared with net revenue of RMB13.44 billion in Q2 2016, primarily driven by the growth in the number of total active customers, repeat customers, and total orders.”

Vipshop’s number of active customers for Q2 2017 increased by 22% to 28.1 million on y-o-y basis. The Company’s total active customers for the trailing twelve months ended June 30, 2017, reached 58.8 million, representing a 32% y-o-y increase. For Q2 2017, Vipshop’s total orders had increased by 23% to 84.8 million y-o-y.

Vipshop’s gross profit grew by 19.1% to RMB3.86 billion (US$569.4 million) for Q2 2017 from RMB3.24 billion in Q2 2016. The Company’s gross margin was 22.0% versus 24.1% in the prior year’s comparable period, primarily attributable to investment in promotional activities for market share gain.
Vipshop could continue gorowing by itself or be bought by larger Tencent or Alibaba.
Eaither way it is a bargain to get Forward P/E = 10 for an esplosive 30% growth giant.


1. deminvest - September 8, 2017

My Trade:
BOT 160 VIPS VIPSHOP HOLDINGS LTD Day 09/08/17 2:04 PM 0 Executed $9.2190

2. deminvest - December 18, 2017

I guessed right! VIPS it was really a target for larger companies. I had even guessed the name right: Tencent.

“Vipshop Soars On $863 Million Investment From Tencent, JD.com
China-based Vipshop Holdings (VIPS) soared Monday following news that Tencent Holdings (TCEHY) and JD.com (JD) will invest $863 million in the online discount retailer.
Vipshop was up 45%, near 12.25 during morning trading in the stock market today. The deal was announced late Sunday.
Tencent, China’s leader in online messaging and gaming, will invest $604 million and receive a 7% stake in Vipshop. JD.com, a leading e-commerce retailer that competes most directly against Alibaba (BABA), will invest $259 million for a 5.5% stake.
Tencent and JD.com paid a 55% premium for the shares, which are subject to a two-year lockup period. The two will have the right to appoint a director and an observer to Vipshop’s board of directors during the lockup period.”

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