3 Chinese e-commerce stocks are up more than 20% year-to-date


The rapid acceleration of online shopping has made the e-commerce industry one of the most successful sectors in the era of the pandemic. China is the largest e-commerce market in the world, representing more than half of e-commerce retail sales worldwide, totaling $2.1 trillion in 2021. Online shoppers have grown significantly and accounted for more than 812 million people in China last year. The rapid economic recovery, coupled with growing consumer confidence, has enabled Chinese e-commerce companies to achieve robust growth over the past two years.

The Chinese government has published a plan which sets objectives to be achieved in order to increase the share of the digital economy in the gross domestic product (GDP) to 10% by 2025. According to a report from Morgan Stanley analysts, China’s consumer spending is expected to double to $12.7 trillion by 2030. As consumer spending continues to rise, e-commerce is set to thrive.

Quality Chinese E-commerce Stocks Vipshop Holdings Limited (VIP), Yunji Inc. (YJ) and LightInTheBox Holding Co., Ltd. (LITB) have posted double-digit gains so far this year, reflecting bullish investor sentiment. And as domestic and international demand grows, these stocks are expected to rally further in the near term.

Vipshop Holdings Limited (VIP)

VIPS is an online discount retailer for various brands. Its head office is in Guangzhou, People’s Republic of China. The Company operates through three segments: Vip.com; Shan Shan outlets; and other. It offers women’s apparel, men’s apparel, personal care and cosmetics, handbags, footwear and accessories, home furnishings, home appliances and consumer electronics. It provides its branded products through online platforms vip.com, vipshop.com and websites.

VIPS’ total net revenue increased 7.5% year-on-year to RMB 24.90 billion ($3.93 billion) in its fiscal third quarter, ended September 30, 2021. VIPS cash and cash equivalents increased 4.4% in the nine months ended September. July 30, 2021, to reach 12.53 billion RMB ($1.98 billion).

Analysts expect VIPS revenue for fiscal year 2021, ending Dec. 31, to be $18.64 billion, an 18.2% year-over-year increase .

The stock price has gained 17.1% year-to-date and 12.3% over the past month. VIPS closed yesterday’s trading session at $9.84.

the POWR Rankings evaluate stocks on 118 separate factors, each with its own weighting. VIPS has a B rating for Value. Within the China industry, it is ranked No. 19 out of 50 stocks.

To view additional POWR (momentum, sentiment, growth, stability, and quality) ratings for VIPS, Click here.

Yunji Inc. (YJ)

Based in Hangzhou, People’s Republic of China, YJ operates as a social e-commerce platform. The Company offers a wide range of product categories that meet users’ daily needs, including beauty, personal care, housewares, food, electronics, apparel, bags, home appliances and products. of maternity.

On January 12, 2022, YJ announced the expansion and development of its in-house health food brand Baiyueshan. The goji puree product was recently launched under the brand and generated tens of millions of renminbi in sales. These launches are expected to meet the needs of a broad customer base and boost YJ’s sales and revenue streams.

On January 7, 2022, YJ launched a new private label Qingziyang, a probiotic bolus solid drink. The company offers healthy and nutritious products to consumers. With this cultivation product launch, YJ is expected to boost sales and increase the company’s profit margins.

During its fiscal third quarter, ended September 30, 2021, YJ’s operating profit increased 172.2% year-on-year to RMB 17.60 million (US$2.73 million). dollars). YJ adjusted net income rose 309.6% year-on-year to reach RMB 76.26 million ($11.84 million). Its net profit attributable to common shareholders increased 243.5% from the previous year’s value to RMB60.84 million ($9.44 million), and its net profit per share increased by 250 % over the previous year’s value at 0.03 RMB.

The consensus revenue estimate of $1.05 billion for its fiscal 2021, which ended December 2021, represents 22.1% year-over-year growth from its fiscal 2020. The company has a impressive track record of earnings surprises; it has exceeded consensus EPS estimates in three of the past four quarters.

YJ shares are up 54.2% year-to-date and 13.4% over the past six months. It closed yesterday’s trading session at $0.96.

According to POWR Ratings, YJ has a B rating for sentiment and value. Among the 75 actions of the Technology -Services industry, it is ranked #42. Click here to see additional POWR ratings for Momentum, Growth, Quality, and Stability for YJ.

LightInTheBox Holding Co., Ltd. (LITB)

LITB operates as a cross-border e-commerce platform that directly supplies products to customers around the world from manufacturers. LITB is headquartered in Shanghai, People’s Republic of China.

The company offers custom fast fashion apparel and other merchandise. Additionally, it offers supply chain management, research and development, warehouse management, local delivery, and IT support services.

During its fiscal third quarter, ended September 30, 2021, LITB’s apparel sales increased 39.6% year-over-year to $61.90 million. Its gross margin increased slightly year-over-year to $43.90 million in the third quarter of fiscal 2021.

The stock has gained 13.9% year-to-date and closed yesterday’s trading session at $1.15.

According to POWR ratings, LITB is ranked No. 18 out of 54 Chinese industry stocks. Click here to see LITB Ratings for Momentum, Stability, Growth, Value, Sentiment and Quality.

VIPS shares were trading at $8.74 per share on Wednesday morning, down $1.10 (-11.18%). Year-to-date, VIPS has gained 4.05%, versus a -9.48% rise in the benchmark S&P 500 over the same period.

About the Author: Mangeet Kaur Bouns

Mangeet’s keen interest in the stock market led her to become an investment researcher and financial journalist. Using its fundamental approach to stock analysis, Mangeet seeks to help retail investors understand the underlying factors before making investment decisions. Continued…

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