On May 15, Merrill Lynch released a 48-pageFight a lotresearch report, giving the highest "buy" rating, target price of 32 US dollars / share, comparedFight a lotThe current share price of $22.15/share is 44.47% higher. This is the first time Merrill willFight a lotIncluded in the scope of the report.
Merrill pointed out thatFight a lotIt is the leader of China's new e-commerce, and its scale is the second largest e-commerce platform in China, and it continues to maintain rapid growth. Merrill believes thatFight a lotCreated a new consumer scene based on its unique model,Fight a lotIt will gradually grow into an important channel to promote the growth of Chinese manufacturing companies.
Fight a lotAt present, the number of active buyers has reached 419 million, and the annual average consumption is 1126.9 yuan. Merrill Lynch believes that based on continuous upgrades, matching technology, leading user engagement, more diverse products, and high-intensity promotions throughout the year,Fight a lotWill promote users to achieve more frequent shopping, which will drive the rapid growth of GMV.
Merrill Lynch analysis predicts that between 2019 and 2021,Fight a lotThe average annual consumption of active buyers will increase by at least two times (average 3,258 yuan per person), and the overall GMV will reach 1.864 trillion yuan in two years, with a compound annual growth rate of 58%. In addition,Fight a lotCurrently still very conservativecurrencyRate policy, its platform commissions and related marketing expenses are much lower than other e-commerce platforms;Fight a lotSubsidies allow Li and other promotional activities to continue and be fierce. Therefore, the revenue of the platform from 2019 to 2020 may be lower than Wall Street’s expectations, but the long-term investment will undoubtedly be more favorable.Fight a lotMedium and long term growth.
At the same time, however, Merrill also analyzed that compared to other aspects,Fight a lotThe main potential risk is that the reputation of the platform caused by the increasingly fierce competition in the industry continues to suffer. Comprehensive information, Merrill Lynch forecast,Fight a lotIn the first quarter of 2019, the revenue was 4.247 billion yuan. 2019-2021,Fight a lotThe annual revenue will achieve 72% annual compound growth, the company will achieve profit in the second half of 2020, and it is expected to achieve a profit of 10.36 billion yuan in 2021.
(Article source: Securities Times Network)