Today, 9:16 AM
Fri, May 22, 12:09 PM
- The Shanghai exchange rose 2.8% overnight to a 7-year high, and has once more taken U.S.-traded Chinese Internet/mobile names higher with it.
- Major gainers include Renren (RENN +10.4%), Youku (YOKU +14.1%), SouFun (SFUN +10.8%), Weibo (WB +4.4%), Dangdang (DANG +7.9%), Momo (MOMO +9.7%), and iDreamSky (DSKY +4.9%). Ctrip and eLong are also up sharply, following news an investor group featuring Ctrip bought a 62.4% stake in eLong from Expedia.
- Renren, whose stable of online P2P lending investments has been drawing attention, is now up 31% since its May 12 Q1 report. Youku is up 33% since providing strong Q2 guidance to go with mixed Q1 results on Wednesday evening. Momo is up 44% since delivering market-pleasing Q1 results on Monday afternoon.
- ETFs: KWEB, CQQQ, QQQC
Mon, Apr. 27, 12:17 PM
- Chinese Internet stocks are adding to their big recent gains following a 2.7% overnight rally in Shanghai, as investor sentiment towards Chinese equities continues improving following a string of stimulus moves. Today's gains come with the Nasdaq (took out its 2000 highs on Friday) down 0.2%.
- Baidu (BIDU +3%) is among the winners. Others include Youku (YOKU +10.7%), Vipshop (VIPS +4.1%), Dangdang (DANG +6.7%), 58.com (WUBA +3%), E-House (EJ +3.7%), 500.com (WBAI +4.3%), Sina (SINA +4.1%), Bitauto (BITA +3.1%), Autohome (ATHM +2.4%), Qunar (QUNR +3.5%), Xunlei (XNET +5.7%), and Renren (RENN +2.3%).
- Baidu's gains come ahead of its Wednesday Q1 report. Vipshop and 58.com have made fresh highs; the latter is up 61% since the first report emerged of a deal (later confirmed) with rival Ganji.com. Youku is up 53% from an April 2 post-earnings low of $12.31, and 500.com is up 47% since the company suspended all online lottery sales in early April, while stating it will work with regulators to restart sales. Renren is up 31% from its March 30 close, possibly aided by enthusiasm for its large and growing portfolio of online lending investments.
- JD.com and Sky-mobi are rallying today with the help of bullish analyst notes. Perfect World has received a lift from an improved buyout offer.
- ETFs: KWEB, CQQQ, QQQC
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
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
Tue, Mar. 31, 12:45 PM
Tue, Mar. 31, 9:13 AM
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Wed, Mar. 11, 1:44 PM| 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.
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
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
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.
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.
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
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%.
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