China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

[Vipshop (VIPS US) Earnings Review]: Demand for Apparel Rising on Increased Social Activity

VIPShop (VIPS US): Attractive Value Play Underappreciated by Investors Looking for Growth

[Vipshop (VIPS US, BUY, TP US$18.1) TP Change]: Discount Offerings Remain Hot Given Cold Consumption

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>VIPS reported C4Q22 total revenue largely in line. Non-GAAP net profit beat our est. and cons. by 12%, mainly due to gross margin improvement and reduction in G&amp;A cost. </li>
<li>The loyal customers of Super VIP program and strong focus on apparel category make the platform relatively immune to the pricing competition in eCommerce space.  </li>
<li>Despite intensifying competition, VIPS would maintain stable margin while enjoying gradual return of discretionary spending. Upgrade to BUY with TP of US$16.3, which implied 10x P/2023E.</li>
</ul>


VIPS reported C4Q22 total revenue largely in line. Non-GAAP net profit beat our est. and cons. by 12%, mainly due to gross margin improvement and reduction in G&amp;A cost. 
The loyal customers of Super VIP program and strong focus on apparel category make the platform relatively immune to the pricing competition in eCommerce space.  
Despite intensifying competition, VIPS would maintain stable margin while enjoying gradual return of discretionary spending. Upgrade to BUY with TP of US$16.3, which implied 10x P/2023E.


[Vipshop (VIPS US) Rating Change]: UG to BUY for Immunity from Price War

Vipshop Holdings

[Vipshop (VIPS US) Rating Change]: UG to BUY for Immunity from Price War