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E-Commerce China Dangdang Inc. (DANG)

- NYSE
  • Wed, Apr. 8, 10:58 AM
    • Following a big overnight rally in Hong Kong (followed a 3-day holiday during which Shanghai rallied), beaten-down Chinese Internet and mobile stocks have soared in U.S. trading.
    • The biggest gainers include many names that are far below their 2014 highs: The group includes Qihoo (QIHU +10.5%), YY (YY +14.9%), Taomee (TAOM +14.3%), Sina (SINA +8.7%), and Weibo (WB +12.1%). Mobile game publishers Sky-mobi (MOBI +12.6%), China Mobile Games (CMGE +8%), and iDreamSky (DSKY +13.4%) are also sharply higher, as are online real estate plays SouFun (SFUN +13.1%), E-House (EJ +6.1%), and Leju (LEJU +9.8%).
    • Giants Alibaba (BABA +3.4%) and Baidu (BIDU +4.1%) aren't being left out. Neither are Youku (YOKU +7.5%), 21Vianet (VNET +7.4%), Momo (MOMO +6.8%), Sohu (SOHU +7.7%), Changyou (CYOU +4.5%), Dangdang (DANG +7.3%), Vipshop (VIPS +4.8%), JD.com (JD +3.9%), Jumei (JMEI +6.6%), Sungy Mobile (GOMO +5.8%), China Techfaith (CNTF +7.1%), and KongZhong (KZ +5.5%).
    • Alibaba has proposed an asset injection into its money-losing Alibaba Pictures (+36% in Hong Kong) film arm. Sky-mobi has seen Rosenblatt (Buy) hike its target to $11, while noting many Chinese mobile game developers have been bought out; it thinks Sky-mobi's investments in developers could be worth $140M. NetEase has been upgraded by CICC Research.
    • Over in Hong Kong, software/cloud services provider Kingsoft (OTCPK:KSFTF) rose 24.2% to HKD$29.50. Messaging/gaming giant Tencent (OTCPK:TCEHY) rose 3.3% to HKD$154.80.
    • ETFs: KWEB, CQQQ, QQQC
    | 132 Comments
  • Tue, Mar. 31, 2:20 PM
    • In addition to beating Q4 estimates, Dangdang (NYSE:DANG) is guiding for Q1 revenue of RMB2.2B ($354.8M), +28% Y/Y and above a $353.5M consensus. Marketplace GMV is expected to rise 49% to RMB1.77B ($285.8M).
    • Active customers +10% Y/Y in Q4 to 9.8M; new customers +20% to 3.7M. Total orders +13% to 20.4M, with mobile accounting for 31%. Media revenue +21.8% to $234.5M; general merchandise +41.7% to $154.7M; Other revenue -9.7% to $14.5M. Marketplace GMV +61.2% to $362.2M.
    • Thanks to a mix shift towards general merchandise sales, gross margin fell to 17.1% from 17.6% in Q4 2013. Fulfillment spend fell to 8.8% of revenue from 9.4%, and G&A to 1.7% from 0.6% (depressed last year by VAT refunds). Tech/content spend rose to 2.6% of revenue from 2%, and marketing to 4.8% from 4.2%.
    • With Dangdang having gone into earnings down nearly 50% from a 52-week high of $16.42, expectations were fairly low.
    • Q4 results, PR
    | Comment!
  • Tue, Mar. 31, 12:45 PM
    | Comment!
  • Tue, Mar. 31, 9:13 AM
    | 1 Comment
  • Tue, Mar. 31, 8:09 AM
    • E-Commerce China Dangdang (NYSE:DANG): Q4 EPS of $0.07 beats by $0.01.
    • Revenue of $403.73M (+23.9% Y/Y) beats by $1.14M.
    • Shares +1.43% PM.
    • Press Release
    | 2 Comments
  • Wed, Mar. 11, 1:44 PM
    • Citing "a scheduling issue," Dangdang (NYSE:DANG) is pushing back the release of its Q4 report to point later this month; no specific date has been given. The Chinese online retailer previously planned to report on Thursday morning.
    • Shares are now less than $0.50 above a 52-week low of $7.76.
    | 12 Comments
  • Tue, Feb. 17, 2:46 PM
    • Vipshop (VIPS +14.4%) has surged to new 52-week highs after trouncing Q4 revenue estimates (and posting a more moderate EPS beat) and guiding for Q1 revenue of $1.25B-$1.3B (above a consensus of $1.22B and good for 78%-85% Y/Y growth). Given the company's history, the guidance might be conservative.
    • Vipshop's active customers rose 114.2% Y/Y in Q4 to 12.2M, and its orders rose 99.6% to 35.3M. Mobile made up a whopping 66% of GMV, up from Q3's 57% and above Alibaba's 42%.
    • Gross margin rose 40 bps Y/Y to 24.9%, and operating expenses grew 115% to $287.5M (exceeded revenue growth of 108.9%). Fulfillment spend  +73.9%; marketing +135.5%; tech/content +168.9%; G&A +209.2%.
    • Chinese e-commerce peers JD.com (JD +2.4%), Dangdang (DANG +5.8%), and LightInTheBox (LITB +3.4%) are following Vipshop higher. Vipshop and JD.com have both argued their internal logistics/fulfillment investments give them an edge over many of the sellers relying on Alibaba's platforms.
    | Comment!
  • Wed, Feb. 4, 2:05 PM
    • In a fresh monetary easing move, the PBOC has cut its reserve requirement ratio for banks by 50 bps to 19.5%, its first cut since 2012. Many Chinese Internet and mobile stocks are posting healthy gains on a day the Nasdaq is near breakeven.
    • Carriers China Mobile (CHL +2.3%), China Unicom (CHU +4.5%), and China Telecom (CHA +1.9%) are among the gainers. As are online retailers Vipshop (VIPS +4%) and Dangdang (DANG +5.1%).
    • Other notable gainers include online video giant Youku (YOKU +3.9%), mobile game publishers Sky-mobi (MOBI +7.8%) and China Mobile Games (CMGE +2.6%), chat app/social network owner Momo (MOMO +4.1%), microblogging leader Weibo (WB +2.7%), online/mobile game developer NetEase (NTES +2.4%), online classifieds leader 58.com (WUBA +2.3%), and #2 online travel agency Qunar (QUNR +3.4%).
    • ETFs: KWEB, CQQQ, QQQC
    • Previously covered: SouFun, E-House
    | 8 Comments
  • Mon, Feb. 2, 2:50 PM
    • Tech companies posting major gains today include fiber access equipment vendor Zhone (ZHNE +5.3%), wireless charging tech developer Energous (WATT +4.6%), 4G infrastructure software vendor Mavenir (MVNR +5.8%), online content provider Demand Media (DMD +6.2%), and online health insurance seller eHealth (EHTH +3.9%).
    • Major tech decliners include several Chinese Internet names. Specifically, online retailers Vipshop (VIPS -4.9%) and Dangdang (DANG -4.1%), auto site Bitauto (BITA -6.4%), mobile game publisher Sky-Mobi (MOBI -4%), and social media/gaming platform YY (YY -6.3%).
    • Other notable decliners include cybersecurity hardware firm KEYW (KEYW -4.9%), telecom/ARM server chipmaker AppliedMicro (AMCC -10.1%), specialty foundry TowerJazz (TSEM -4.7%), cloud healthcare software firm Castlight (CSLT -4.1%), cloud marketing software firm Marketo (MKTO -4.5%), online coupon code platform RetailMeNot (SALE -4.7%), optical component vendor NeoPhotonics (NPTN -6%), and supply chain software firm Manhattan Associates (MANH -5.1%). The Nasdaq is down 0.3%.
    • Previously: Solar stocks jump amid oil/energy stock rally
    | Comment!
  • Dec. 8, 2014, 2:51 PM
    • Though Shanghai was up 2.8% overnight following positive trade surplus data, Chinese Internet stocks are off sharply in U.S. trading amid a broader equity selloff. The Nasdaq is down 0.9%.
    • Major decliners: WUBA -11.9%. QIHU -6.9%. MOBI -6.8%. YY -5.9%. WBAI -7.7%. CCIH -9.3%. VNET -8.9%. JMEI -8.9%. ATHM -8.5%. DANG -6.5%. SOHU -4.6%. SFUN -4.3%. EJ -4.4%. CMCM -6.9%. CMGE -8.3%.
    • Valuations for the group are generally much lower today than they were in spring.
    | 21 Comments
  • Nov. 10, 2014, 2:03 PM
    • Alipay managed to process over $1B (RMB6.12B) of transactions on Alibaba's (BABA +2.5%) marketplaces during the first 17 minutes and 58 seconds of Singles Day (11/11, China's biggest online shopping day), and over $2B (RMB12.24B) during the first hour and 12 minutes. Mobile accounted for 45.7% of the latter figure.
    • For reference, Alibaba's core Taobao and Tmall sites handled over RMB35B of transactions during the whole of Singles Day last year. This year, Alibaba's sites are expected to handle ~RMB50B ($8.17B).
    • The figures somewhat overstate the amount of actual commerce done, given high return rates. Gartner notes 25% of Singles Day merchandise bought last year was returned, and Barclays estimates the full-year return rate for Chinese online transactions is 20%.
    • Alibaba has rallied to new post-IPO highs, and its Chinese e-commerce peers are faring even better. JD +7.1%. VIPS +4.8%. DANG +4.3%. Alibaba's market cap now stands at $286B, soundly above Wal-Mart's $256B.
    | 1 Comment
  • Oct. 15, 2014, 2:28 PM
    • On a day when the Nasdaq is down 1.8% and the S&P 2.2%, many Chinese Internet stocks are rallying. China's lowest CPI print in five years - it helped the Shanghai exchange rise 0.7% overnight - could be playing a role.
    • Baidu (BIDU +1.1%), Sohu (SOHU +2.8%), Youku (YOKU +4.9%), Vipshop (VIPS +3%), and Weibo (WB +2.9%) are among the standouts. Others: CMGE +6.1%. MOBI +4.1%. NTES +3.5%. DANG +2.3%. SFUN +1.7%. CCIH +1.7%. BITA +1.5%.
    • ETFs: KWEB, CQQQ, QQQC
    | 7 Comments
  • Sep. 22, 2014, 1:45 PM
    • High-beta tech stocks are selling off hard as the Nasdaq registers a 1.3% decline. The selling is broad-based, with Internet, solar, and enterprise tech stocks all well-represented among the ranks of major decliners.
    • Major Internet decliners: BIDU -4.7%. ANGI -7%. YELP -5.9%. AWAY -5.1%. CHGG -5.9%. GRUB -5.8%. P -5.2%. Z -4.6%. TRLA -4.8%. ATHM -7.9%. BITA -7%. DANG -5.9%. WB -5.3%.
    • Solar: FSLR -4.5%. SCTY -7.5%. SPWR -4.5%. DQ -7.6%. JKS -5.5%. ASTI -6.3%. ENPH -5.5%. CSIQ -4.8%.
    • Enterprise: WDAY -5.4%. GIMO -6.7%. VMEM -7.7%. IMPV -4.8%. MKTO -4.9%. SPRT -5.1%. CSOD -5.5%.
    • Others: HIMX -4.6%. SIGM -5.6%. WATT -9.7%. CYNI -5.3%. ADNC -5.7%. PXLW -5%. SWIR -5.8%. MITK -6%. OCLR -6%.
    | 14 Comments
  • Aug. 22, 2014, 5:36 PM
    | 2 Comments
  • Aug. 14, 2014, 10:52 AM
    • Though Dangdang (NYSE:DANG) beat Q2 estimates, it's guiding for Q3 revenue of RMB1.984B ($322.5M), below a $325.7M consensus. Marketplace GMV is expected to grow 80% Y/Y.
    • Q2 media revenue +43.5% Y/Y to $218.6M, general merchandise +8.2% to $84.5M, other revenue +26.1% to $13M. Marketplace GMV +81.6% to $230.7M.
    • Gross margin rose to 18.3% from 18.2% in Q1 and 17.1% a year ago. Fulfillment spend fell to 9.7% of revenue from 12% a year ago; marketing spend to 4.2% from 5.1%; tech/content spend to 2.4% from 3.1%; and G&A to 2.1% from 2.3%.
    • Active customers totaled 8.5M, up 23% Y/Y but down slightly Q/Q. Total orders rose 10% Y/Y and slightly Q/Q to 16.5M. Mobile accounted for 17% of orders (22% in June).
    • Peer Vipshop is selling off in spite of providing a Q2 beat and strong guidance. Online cosmetics retailer Jumei (JMEI -3.6%) is following Dangdang and Vipshop lower ahead of its Aug. 18 Q2 report.
    • Q2 results, PR
    | Comment!
  • Aug. 14, 2014, 9:17 AM
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Company Description
E-Commerce China Dangdang Inc is a business-to-consumer, or B2C, e-commerce company. The Company is engaged in selling books online. It is also engaged in other media products and selected general merchandise categories.
Sector: Services
Country: China