Tue, Sep. 1, 1:28 PM
- Though the Nasdaq is off 2.4% on a day in which Chinese macro concerns are running high, Dangdang (DANG +2.5%) is higher after beating Q2 EPS estimates (while missing on revenue) against a backdrop of low expectations. No guidance has been provided.
- Lifting EPS: Fulfillment spend fell to 8.9% of revenue from 10.7% a year ago, marketing spend fell to 3.2% from 4.6%, and G&A spend to 2.1% from 2.3%. Tech/content spend remained at 2.6% of revenue. Gross margin fell to 14.8% from 15.2% in Q1 and 20.1% a year ago.
- GMV rose 32.1% Y/Y to $304.9M, active customers 15% to 9.7M, and orders 19% to 19.5M. Mobile accounted for 40% of orders vs. 41% in Q1 and 17% a year ago. Media revenue rose 18.3% Y/Y to $224.5M; general merchandise revenue rose 61.7% to $136.7M.
- Dangdang still hasn't made a decision on the $7.81/share going-private offer it received in early July.
- Q2 results, PR
Mon, Jul. 27, 9:29 AM
- After bouncing in recent weeks with the help of massive government support, Chinese markets nosedived once again overnight amid a backdrop of weak manufacturing data. Shanghai fell 8.5%, Shenzhen fell 7%, and the ChiNext Index fell 7.4%.
- Not surprisingly, many U.S.-traded Chinese tech names are off sharply in premarket trading. YY -4.2%. Qihoo (NYSE:QIHU) -5.5%. JD.com (NASDAQ:JD) -5.4%. SOHU -6%. iDreamSky (NASDAQ:DSKY) -9.6%. SouFun (NYSE:SFUN) -8%. SINA -5.5%. Weibo (NASDAQ:WB) -7.8%. Vipshop (NYSE:VIPS) -4.8%. Youku (NYSE:YOKU) -6.2%. Qunar (NASDAQ:QUNR) -6.2%. Dangdang (NYSE:DANG) -5.4%. 58.com (NYSE:WUBA) -4.7%. 500.com (NYSE:WBAI) -7.2%. Jumei (NYSE:JMEI) -5.7%. NQ Mobile (NYSE:NQ) -6%. Bitauto (NYSE:BITA) -6.3%. Autohome (NYSE:ATHM) -4.8%. Cheetah Mobile (NYSE:CMCM) -10.1%.
- Sohu and Changyou reported this morning. Baidu reports after the close.
- ETFs: CQQQ, QQQC, KWEB, EMQQ
Mon, Jul. 27, 9:14 AM
Mon, Jul. 13, 7:37 AM
- Dangdang (NYSE:DANG) announces it created a special committee with the purpose of exploring options for taking the company private including on offer received last week from the Chairwoman of the Board of Directors.
- The offer from Peggy Yu Yu and her spouse CEO Guoqing Li was for $7.812 per ADS.
- Previously: Dangdang receives going-private proposal; shares +11.8% (Jul. 09 2015)
- DANG +3.35% premarket to $6.79.
Thu, Jul. 9, 9:18 AM
Thu, Jul. 9, 9:18 AM
- Dangdang (NYSE:DANG) has received a non-binding going-private proposal from chairwoman Peggy Yu Yu and CEO Guoqing Li to acquire the company for $7.812 per ADS - a 20% premium to Wednesday's close.
- The would-be acquirers currently have a 35.9% stake, and 835% voting power. They intend to finance the acquisition with "a combination of debt and/or equity capital, and rollover equity in the Company."
- Dangdang has jumped to $7.32 premarket. Plenty of other Chinese companies have received going-private offers over the last two months. Dangdang's offer follows a Chinese market plunge.
Wed, Jul. 8, 9:12 AM
Tue, Jul. 7, 10:42 AM
- The selloff in Chinese equities refuses to let up: Shanghai fell 1.3% overnight, Shenzhen fell 5.3%, and Hong Kong fell 2.7%. The declines come amid a backdrop of frantic government efforts to halt the plunge, and requests by hundreds of Chinese companies for trading halts.
- The lion's share of U.S.-traded Chinese Web and mobile firms are down at least 5%, and many are down more than twice that. In alphabetical order by ticker, major decliners include Autohome (ATHM -10.6%), Bitauto (BITA -18.7%), Baozun (BZUN -22.7%), ChinaCache (CCIH -14.6%), Cheetah Mobile (CMCM -15.2%), China Mobile Games (CMGE -13.2%), Ctrip (CTRP -10.1%), Changyou (CYOU -12.6%), Dangdang (DANG -13.8%), iDreamSky (DSKY -15.4%), E-House (EJ -15.9%), Jumei (JMEI -20.2%), Leju (LEJU -12.1%), eLong (LONG -12.6%), Momo (MOMO -9.4%), NQ Mobile (NQ -16.7%), NetEase (NTES -12.2%), Qihoo (QIHU -10.3%), Qunar (QUNR -14.2%), Renren (RENN -17.8%), SouFun (SFUN -16.3%), Sohu (SOHU -10.9%), Taomee (TAOM -15.1%), Vipshop (VIPS -9.7%), Weibo (WB -10.9%), 500.com (WBAI -26.2%), Wowo (WOWO -26.7%), 58.com (WUBA -17.3%), Xunlei (XNET -14%), Youku (YOKU -12.2%), and YY (YY -9.4%).
- The plunge seen over the last two months (aided by panic selling and margin calls?) has led multiples for U.S.-traded Chinese tech names to compress dramatically, with forward P/E and P/S ratios often below those of U.S. peers sporting similar growth profiles. The Guggenheim China Tech ETF (CQQQ -9.3%) is down 29% from a May peak of $45.64.
- ETFs: KWEB, QQQC, EMQQ
- Yesterday: Chinese tech stocks tumble again in spite of fresh government support
- Earlier today: Chinese phone firms decline as country's markets sink
- Update: The group pared its losses a bit in afternoon trading. CQQQ closed down 5.8%.
Mon, Jul. 6, 11:01 AM
- The Shanghai exchange rose 2.4% overnight following a Greek rejection of austerity measures and the unveiling by Chinese brokerages of a government-endorsed plan to buy at least RMB120B ($19.3B) worth of shares to prop up nosediving equity prices. However, Shenzhen fell 2.7% and Hong Kong fell 3.7%, with small-cap names especially hard-hit.
- U.S.-traded Chinese Web/mobile names are seeing heavy losses (CQQQ -7.8%), with small/mid-cap firms unsurprisingly bearing the brunt of the damage. Major decliners include Sina (SINA -8.8%), Weibo (WB -11.6%), YY (YY -7.3%), Sohu (SOHU -9.1%), Changyou (CYOU -11.8%), Youku (YOKU -12.3%), Jumei (JMEI -8.2%), Xunlei (XNET -8.7%), SouFun (SFUN -9.3%), Leju (LEJU -7.6%), E-House (EJ -6.9%), Sky-mobi (MOBI -9.4%), NQ Mobile (NQ -6.3%), 500.com (WBAI -11.6%), Momo (MOMO -6%), and Dangdang (DANG -6.7%).
- The NYT observes $2.7T in value has evaporated from Chinese equities since local markets peaked on June 12. The paper also notes individual investors own over 80% of Chinese stocks, and that Chinese investors respectively own 112M and 142M accounts on the Shanghai and Shenzhen exchanges, with each exchange seeing ~20M account openings this spring.
- ETFs: KWEB, QQQC, EMQQ
Mon, Jul. 6, 9:10 AM
Fri, Jun. 26, 11:45 AM
- As was the case a week ago, Chinese Web and mobile names are getting clocked in response to a sharp overseas selloff: Shanghai and Shenzhen respectively fell 7.4% and 7.9% overnight, putting their recent declines around the standard bear market threshold of 20%. The Nasdaq is down 0.4%.
- Explanations for China's selloff range from tighter margin requirements to cautious analyst notes to speculators simply choosing to take profits following a massive run-up. Shanghai and Shenzhen's 12-month gains now stand at 106% and 132%.
- Major U.S.-traded decliners include YY (YY -6.5%), Sohu (SOHU -5.4%), Sina (SINA -4.7%), Weibo (WB -5.2%), Xunlei (XNET -9.5%), Dangdang (DANG -8.7%), Jumei (JMEI -9.1%), Youku (YOKU -8.7%), Cheetah Mobile (CMCM -7.2%), Bitauto (BITA -6.7%), SouFun (SFUN -5.9%), ChinaCache (CCIH -5.4%), Zhaopin (ZPIN -5.6%), Wowo (WOWO -3%), and 500.com (WBAI -5.3%).
- ETFs: CQQQ, KWEB, QQQC, EMQQ
Wed, Jun. 17, 10:23 AM
- Qihoo says it has received a ~$10B going-private offer from a group led by CEO Hongyi Zhou, the largest offer yet in the wave of bids received by U.S.-traded Chinese firms in recent weeks.
- Meanwhile, ahead of Qihoo's announcement, the high-flying Shanghai and Shenzhen exchanges respectively rose 1.7% and 2%. The indices are respectively up 140% and 181% over the last 12 months.
- In addition to YY and SouFun (previously covered), major Chinese tech gainers include Sina (SINA +4.8%), Weibo (WB +6.1%), Bitauto (BITA +4.9%), Youku (YOKU +6.8%), Momo (MOMO +8.3%), Xunlei (XNET +8.6%), Dangdang (DANG +5.6%), Sohu (SOHU +4.4%), Zhaopin (ZPIN +5.9%), and Jumei (JMEI +6.1%).
- ETFs: CQQQ, KWEB, QQQC
Mon, Jun. 15, 4:32 PM
- A temporary correction or a sign of things to come? The high-flying Shanghai and Shenzhen exchanges respectively fell 2% and 2.2% overnight, and many Chinese Internet stocks went in the same direction in U.S. trading (CQQQ -3.3%).
- Today's 5%+ decliners included Dangdang (DANG -10.6%), SouFun (SFUN -6.5%), Leju (LEJU -9.2%), ChinaCache (CCIH -7.9%), Xunlei (XNET -6.6%), 500.com (WBAI -6.6%), Changyou (CYOU -5.6%), and Baozun (BZUN -5.1%); a slew of others were off by 2%-5%. iDreamSky fell sharply after announcing a going-private offer from its CEO at a price below Friday's close.
- Many of the aforementioned named have risen sharply this year. This morning, CNNMoney observed Shanghai/Shenzhen's combined market cap had reached $10.3T. Shanghai also has become the world's 3rd-most-valuable exchange, trailing only the NYSE (nearly $20T) and the Nasdaq ($7T).
Wed, Jun. 10, 10:32 AM
- Chinese shoe/leather products manufacturer and retailer Aokang is buying a 25.66% stake in LightInTheBox (NYSE:LITB) for $6.30/share. Aokang's price is 23% above LightInTheBox's Tuesday close, albeit well below where shares traded two years ago.
- The companies plan to jointly develop a global "Internet-Plus" strategy for pairing LightInTheBox's online retail ops and Aokang's bricks-and-mortar ops. News of the deal comes 5 days after LightIntheBox provided soft Q2 guidance to go with a Q1 beat.
- Fellow Chinese online retailer Dangdang (NYSE:DANG) is also up sharply.
Thu, May 28, 12:26 PM
- Though Dangdang (NYSE:DANG) beat Q1 revenue estimates, EPS of -$0.12 was well below a $0.04 consensus. In addition, the Chinese online retailer has guided for Q2 revenue of RMB2.3B ($371M), below a $378.6M consensus.
- Hurting Q1 EPS: Gross margin fell to 15.2% from Q4's 17.1% and Q1 2014's 18.2%. Dangdang blames "a larger contribution of general merchandise sales as a percentage of total net revenues and a decline in logistics revenue from third-party merchants." Fulfillment was 9.1% of revenue, marketing 4.3%, tech/content 2.8%, and G&A 2.3%.
- Business performance: Media revenue +9.5% Y/Y to $203.4M; general merchandise +71.8% to $143.2M; other revenue +1.9% to $11.1M. Active customers +46% Y/Y to 10.2M; total orders +29% to 21.3M (41% via mobile).
- Shares are less than $1.50 removed from a 52-week low of $7.49. The company's Q1-ending cash balance of $267.1M is equal to 32% of its $843M market cap.
- Q1 results, PR
Thu, May 28, 9:16 AM
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