Oppenheimer gives the only product will" outperform" initial ratings

Beijing time on May 4, Oppenheimer for the first time on May 2 to give the CD product will outperform rating, target price $ 7.5, the following content points:

Oppenheimer given an initial rating of the CD product will "outperform", target price $ 7.5. The only product is a leading discount retailer of brand-name network operates China's largest flash share sales site, with annual revenues of $ 227 million, the market share of approximately 18%. Oppenheimer expected to be the only product in 2013 will generate profits, the only product in the use of network discount retail growth potential has a very favorable position. At the same time, the only product with the potential competition from other network discount retailers and e-commerce sites, to product growth and profitability of rising risks, limit the rapid growth of short-term market value, Oppenheimer, optimistic about the only product will be long-term prospects for development.

Points: a leading position in the rapidly growing B2C market segments: the only product with network flash purchase a 18% market share in the sales market, with 12.1 million registered users, 1.5 million active users and 1900 brand partners. Expected that the only product will be in 2012 revenue grew about 153 percent, revenue grew about 113 percent in 2013.

Favorable macro-market trends: the growth of retail e-commerce industry, the main beneficiaries of the increasing disposable income in China, the gradual growth of the Internet user base (513 million Internet users, an increase of 12%), increasing broadband penetration (356 million broadband subscribers, an increase of 14%) and greater consumer acceptance (194 million net shoppers, an increase of 21%), and support for the development of China's logistics and payment systems.

Loyal customer base, high levels of participation: the only product will have a larger relative size of the repeat purchase customer base, contributed most of the revenue they will be the only product. 2011, the only products will have a repeat purchase customers of 900,000, accounting for 60% of the CD products will be 150 million active customers. Repeat purchase customers accounted for the only product 92% of last year's total orders.

A substantial increase in operating leverage: despite huge investments in logistics, sales and marketing activities, products will be operating expenses of a percentage of revenue should continue to decline over time, possibly as early as 2013 to a profit.

2013 commercial rate expected on the basis of valuation: valuation multiples of 0.25 multiplied by Oppenheimer, given the only product would be $ 7.5 the target price, lower than the counterparts of large-scale e-commerce company, is included in the DCF valuation analysis 5-8 U.S. dollar share price range. Oppenheimer wave aps parity the only product will target price reasonably reflects the only product will be strong growth prospects, will be the only product will be short-term operating history, the current size, profitability and short-term risks to adjust.