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Baozun Inc (BZUN)
:BZUN
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Baozun
(NASDAQ:BZUN)
54Neutral
Positive Factors
Financial Performance
Overall adjusted operating loss narrowed in 3Q and was better than expectation.
Revenue Growth
Baozun E-commerce inked revenue growth of 14%, further improved from 6% driven by introduction of high-quality new distribution businesses and ramp-up of services revenue.
Negative Factors
Potential Losses
Better-than-expected OP generated from BEC should buffer a potentially wider-than-expected loss from BBM.
Baozun (BZUN) vs. S&P 500 (SPY)
Market Cap
$191.38M
Dividend YieldN/A
Average Volume (3M)427.28K
Price to Earnings (P/E)―
Beta (1Y)1.41
Revenue Growth4.96%
EPS Growth55.95%
CountryUS
Employees7,827
SectorConsumer Cyclical
Sector Strength50
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)-0.54
Shares Outstanding58,556,194
10 Day Avg. Volume235,444
30 Day Avg. Volume427,279
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.16
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.50Price Target Upside36.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Baozun Business Overview & Revenue Model
Company DescriptionBaozun Inc. (BZUN) is a leading e-commerce solutions provider in China, specializing in helping global brands navigate the Chinese market. The company offers end-to-end services that include IT infrastructure, digital marketing, store operations, customer service, and logistics. Baozun serves a wide range of sectors including fashion, electronics, and fast-moving consumer goods, catering to both domestic and international brands seeking to establish or expand their online presence in China.
How the Company Makes MoneyBaozun makes money primarily through offering technology-enabled e-commerce solutions to brands. Its revenue streams include service fees from its integrated solutions, which encompass IT services, digital marketing, store operations, and customer service management. Additionally, Baozun earns commission-based fees from sales generated on its managed online stores. The company also benefits from strategic partnerships with leading Chinese e-commerce platforms such as Alibaba's Tmall, which enhances its ability to provide comprehensive and effective solutions for brands looking to penetrate the Chinese online retail market.
Baozun Financial Statement Overview
Summary
Baozun is facing significant financial challenges, particularly in profitability. Revenue and profit margins have deteriorated, yet the balance sheet remains stable with manageable debt levels. Cash flow shows resilience, but volatility in free cash flow presents risks. Addressing operational inefficiencies is crucial for improvement.Income Statement
The income statement shows a concerning trend with declining revenue over recent years, highlighted by a negative revenue growth rate from 2020 to 2023. Gross profit margin is stable, but there is a significant deterioration in net profit margin as the company has reported negative net income in the last three years. The EBIT and EBITDA margins are weak, indicating operational challenges.45
Neutral
Balance Sheet
The balance sheet reflects a moderate level of financial health. The debt-to-equity ratio remains manageable, indicating the company is not excessively leveraged. However, the return on equity is negative due to recent losses. The equity ratio is stable, suggesting a balanced asset structure, but the decline in stockholders' equity is a concern.60
Neutral
Cash Flow
Cash flow analysis reveals some positive trends, with operating cash flow improving slightly, but free cash flow growth is inconsistent. The operating cash flow to net income ratio is positive, suggesting good cash flow management despite reported net losses. However, free cash flow is volatile, highlighting potential liquidity risks.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 8.97B | 8.81B | 8.40B | 9.40B | 8.85B | 7.28B | Gross Profit |
| 4.15B | 3.90B | 3.42B | 3.46B | 3.27B | 2.83B | EBIT |
| -202.87M | -206.38M | 33.29M | -136.97M | 558.68M | 306.17M | EBITDA |
| -108.85M | 75.95M | -326.85M | 109.78M | 600.05M | 529.68M | Net Income Common Stockholders |
| -272.10M | -278.42M | -606.79M | -209.26M | 425.99M | 281.30M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.87B | 2.87B | 3.04B | 4.61B | 5.03B | 1.99B | Total Assets |
| 10.47B | 10.47B | 10.12B | 12.32B | 10.47B | 7.10B | Total Debt |
| 2.75B | 2.75B | 2.41B | 3.98B | 2.80B | 2.95B | Net Debt |
| 604.90M | 604.90M | 269.29M | -626.81M | -780.44M | 1.80B | Total Liabilities |
| 4.62B | 4.62B | 4.45B | 5.84B | 4.34B | 4.51B | Stockholders Equity |
| 4.10B | 4.10B | 4.08B | 5.94B | 6.11B | 2.57B |
| Cash Flow | Free Cash Flow | ||||
| 0.00 | 283.25M | 175.65M | -381.69M | 198.96M | 210.13M | Operating Cash Flow |
| 0.00 | 448.25M | 382.61M | -96.11M | 310.01M | 301.40M | Investing Cash Flow |
| 0.00 | -340.37M | -1.31B | 375.82M | -616.37M | -1.13B | Financing Cash Flow |
| 0.00 | -8.03M | -1.65B | 749.95M | 2.67B | 1.78B |
Baozun Technical Analysis
Positive
3.29
Price Trends
3.17
Positive
3.03
Positive
2.82
Positive
Market Momentum
>-0.01
Positive
50.02
Neutral
56.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BZUN, the sentiment is Positive. The current price of 3.29 is below the 20-day moving average (MA) of 3.41, above the 50-day MA of 3.17, and above the 200-day MA of 2.82, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.02 is Neutral, neither overbought nor oversold. The STOCH value of 56.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BZUN.
Baozun Risk Analysis
Baozun disclosed 114 risk factors in its most recent earnings report. Baozun reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Baozun Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $326.81B | 19.55 | 11.97% | 0.70% | 4.28% | 28.42% | |
79 Outperform | $65.52B | 10.91 | 17.55% | 1.81% | 1.88% | 49.67% | |
76 Outperform | $100.89B | 53.19 | 51.50% | ― | 43.56% | 91.72% | |
70 Outperform | $173.45B | 62.06 | 19.58% | ― | 27.85% | 1400.97% | |
63 Neutral | $5.02B | 18.95 | -39.97% | ― | 2.18% | 5.77% | |
59 Neutral | $12.41B | 10.34 | 1.32% | 3.61% | 1.65% | -18.04% | |
54 Neutral | $191.38M | ― | -5.78% | ― | 4.96% | 55.95% |
* Consumer Cyclical Sector Average
Performance Comparison
BZUN
Baozun
3.29
0.51
18.35%
MELI
Mercadolibre
2,004.83
443.56
28.41%
JD
JD
40.37
14.05
53.38%
BABA
Alibaba
137.14
65.28
90.84%
ETSY
Etsy
44.93
-22.49
-33.36%
TSE:SHOP
Shopify
138.84
32.77
30.89%
Baozun Earnings Call Summary
Earnings Call Date: Nov 21, 2024 | % Change Since: 27.03% | Next Earnings Date: Mar 20, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and success in digital integration, particularly with Douyin, which contributed to significant revenue increases. However, challenges remain in profitability and high return rates, as well as underperformance in specific categories. Overall, the sentiment is cautiously optimistic, with strategic initiatives showing promising results.Highlights
Revenue Growth
Total revenues grew by 13% year-over-year to RMB 2.1 billion, with e-commerce revenue increasing by 14% and brand management revenue by 10%.
Success in Digital Integration
The Douyin business experienced triple-digit growth year-over-year, attributed to strategic integration and innovation.
Strategic Transformation Progress
The BEC segment achieved a 14% revenue increase, and the BBM segment saw a 10% growth, marking the first apple-to-apple revenue expansion since the GAP brand acquisition.
Strong Online Sales Performance
The GAP brand ranked higher in men's apparel on Tmall during Double 11, with double-digit growth on multiple platforms.
Lowlights
Profitability Challenges
Adjusted loss from operations was RMB 85 million, though improved from RMB 90 million a year ago.
High Return Rates
The return rate during the Double 11 shopping festival was high, impacting overall operating efficiency.
Low Performance in Certain Categories
Small appliances and travel categories underperformed during the Double 11 campaign.
Company Guidance
During Baozun's Q3 2024 earnings call, the company reported a 13% year-over-year increase in total revenues, amounting to RMB 2.1 billion. The e-commerce segment saw a 14% revenue growth, reaching RMB 1.8 billion, while brand management revenue grew by 10% to RMB 331 million. The company's Douyin business experienced triple-digit growth, contributing significantly to the e-commerce expansion. Baozun's gross profit increased by 2% to RMB 220 million, with a blended gross margin for product sales at 28.1%. Despite an adjusted operating loss of RMB 85 million, Baozun improved its adjusted net loss attributable to shareholders by 12.5% year-over-year to RMB 67 million. The company also repurchased 8.6 million ADS for $9.9 million, reflecting its confidence in future prospects. Looking ahead, Baozun anticipates sustained top-line growth in 2025, driven by strategic partnerships and innovations in digital commerce.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.