Singapore markets closed

Baozun Inc. (BZUN)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
Add to watchlist
34.66-0.09 (-0.26%)
At close: 4:00PM EDT

34.66 0.00 (0.00%)
After hours: 4:47PM EDT

Sign in to post a message.
  • T
    Tomi
    Any dilution in the short term is not good. However if the extra funds permit BZUN to start to increase domestic Chinese customer base in a big way, than it is good. I think the recent unexplained price drop was probably caused by this dilution.
  • T
    Tomi
    Once again the price drop is way over done. The HK IPO is basically 13 million NASDAQ listed shares. This is not a huge dilution, being responsible most likely for the drop from mid 40s to the mid 30s. Also remember that the cash being raised will make their balance sheet super strong. If the November events (Single Day, third quarter earnings, forecast of $th quarter) remain as good as advertised the stock will recover quickly.
  • R
    RC
    I've been holding BZUN for many years now, but I'm beginning to think this company is little more than a facade. There is no reason why the share price should fall over $10 since the beginning of September. Something is definitely wrong. Why are the bogus news articles about BZUN not disclosing that it lost Huawei popping up again now? That's old news and they missed the time frame for any possible litigation action. Article ran yesterday and then again today...why keep running the article? MANIPULATION at its finest!
  • I
    I 8 1 2
  • R
    RC
    Investors are losing confidence in this stock! We were sitting at $43.50 on September 1st. Absolutely no reason for the big drop, but hey...this is the way BZUN rolls. If the stock doesn't turn around tomorrow, it may well drop into the low $30's before the next rise. Shorts are trying to take control again. Don't sell your shares on the cheap. At the moment, BZUN is way undervalued. Good time to start a new position, or add to existing. As sickening as it is to hold this stock, it will perform in the long term.
  • T
    Tomi
    I think BZUN will trade in a narrow price range, say 36-42 at least until mid November. Of course if the overall market goes up or down dramatically the range will change as well. Left to its own devices BZUN will probably drift higher. I tend to look at BABA as a barometer and the Shanghai index (sort of like the DOW). On 11/1 (Singles Day in China) the largest retail selling date, BZUN will announce their sales volume. BZUN tends not to release any information between quarterly presentations. If it is really good it will move the stock. On 11/19 plus or minus a few days, BZUN will announce 3rd quarter earnings. If it exceeds 19 cents that will move the stock up. Of course a rating upgrade by a US brokerage can move the stock up as well. But, I think they are waiting for the November events. Zacks and Motley have very small effect on the price. The real impetus is the undervaluation of the stock. You can't buy growth rates like BZUN at close to 20 times forward PE.
  • D
    Daewoo_67
    One of BZUN's issues is they seldom provide any news. Investors are mostly in the dark. This really is not the way to manage the company
  • R
    RC
    Once again, all my Chinese stocks are in the green except for BZUN. BZUN needs to turn around and do it quickly.
  • R
    RC
    Why the drop?? I own 5 Chinese stocks and all are in the green, except BZUN! I just don't get this stock.
  • R
    RC
    Has anyone heard anything further regarding the 6-month trial BZUN had with IKEA? That was about 6-7 months ago. It would be great to have IKEA on board, but having heard no new news about the possible partnership, doesn't appear too promising.
  • T
    Tomi
    Technology shares are taking a drubbing. Based on valuations it is long overdue. If you look at Tesla being valued for 10 times GM and not really making any money or Zoom selling for many times of IBM or OKTA, CRWD not making any money and up 300% or more. The drop in their shares makes sense. What about BZUN? BZUN is supposed to earn 1.89 net year. So at current price BZUN is close to selling at 20 times PE. In a PE range less than the average stock. It is not a losing money machine like SHOP. This drubbing does not make sense for BZUN. BZUN is dirt cheap. Growing very rapidly with a very rosy outlook.
  • P
    Phoebe
    If you’re looking for a short and sweet guide to the day’s biggest news, I recommend http://dailystox.xyz. They breakdown the most important pre-market news and it only takes a few minutes to read.
  • R
    RC
    Here we go again!! Off to a good start...then drops...now beginning to trend side ways. Own 4 other Chinese stocks...all well into the green. Of course BZUN is my largest position...wouldn't you know it. I've been waiting for this thing to take off for years...beginning to think something seriously wrong...like manipulation. Nothing else can explain the lack luster performance of BZUN. Everything you read, numbers wise, points to success...meaning profits, which it generates. Why is the stock not performing well? It's still early in the day, maybe we'll have a turnaround...but on a Friday?????
  • C
    Chris
    Is Baozun selling shares on the Hong Kong exchange a good thing or bad?
  • T
    Tomi
    I expect a very strong day today. 1-2 points up. Shanghai is up very strongly (DJSH) and Bzun has been battered down way too much. Good luck longs.
  • V
    Victor
    It seems that the market has seriously misread the earnings report conference call this morning. First, more than half the new brands in the second quarter were domestic--a huge new market opening up in addition to the foreign brands. Second, the company is emphasizing more profitable categories and brands. De-emphasizing some of the less profitable brands will lead to a slight slowdown in revenue growth in the current quarter, which is anyhow a seasonally slow one. This is exactly what management should be doing, but it led to a sharp downturn in the stock yesterday and today-leading to an excellent buying opportunity. Here is what Robin Lu, the Chief Financial Officer, had to say in the conference call:

    "Lastly, before we go into details of our second quarter financials, I want to highlight our continued efforts to transition to our high quality growth strategy by optimizing our category mix. On one side we accelerated our acquisition of new brands with the strategic goal to strengthen growth momentum and the [indiscernible] service up to enhance value proposition for our brand partners. On the other side, we continued to deemphasize less profitable categories and the brands.

    For example, we further optimized our 3C category and proactively rebuilt some brand partners that have been impacted by uncertainties post COVID-19, especially some brands under distribution model. This initiative may temporarily impact our GMV and the revenue growth rate on a year-over-year basis as they are very much in line with our high quality growth strategy. So far in the third quarter we are seeing a strong seasonality and despite the current uncertainties in the global macro economy, we will continue our efforts to deliver high quality growth and further optimize our category needs, to drive healthy and sustainable bottom line growth.

    Accordingly, we anticipate that the third quarter 2020 GMV will grow by at least 15% year-over-year and the total net revenues will be between RMB 1.75 billion and RMB 1.80 billion, which represents a growth rate of 16% to 20% year-over-year. In line with our pursuit of high quality growth as we continue to optimize our resource allocation and align with synergies across our business, we are very confident we will achieve around 40% year-over-year growth in non-GAAP operating profits in the third quarter of 2020."

    Baozun is that rare early-stage, high-growth company with rapidly growing profits; I don't plan to sell any of my shares or options. Good luck to all longs.
  • V
    Victor
    In addition to my post 2 days ago, there is another factor behind the apparent slowdown in growth: BZUN's transition from its initial distribution model to a service model (especially Software as a Service or SaaS). Initially, BZUN used mainly a distribution model, buying goods from the producer, storing them, and handling the logistics of getting them to the ultimate buyer. It is now quite advanced in the transition to a service/SaaS model, which is much more profitable. Consider this example. Under the distribution model it may sell a good for $100, on which it makes a net profit of $5-10. Under the SaaS model it may charge a firm $30 which covers the cost of the software and the related services it provides setting up its website, marketing advice and so forth. The margin might be 50% or $15. Revenues have fallen from $100 to $30, but the account has become much more profitable. In the latest earnings report, service revenue increased by 43% and distribution revenue by 9%. Going forward, revenue growth will be driven increasingly by the service revenue growth as the share of distribution revenue diminishes to a minimal part of total revenue.
  • s
    shaft
    Amount raised/ dilution is relatively huge
    Any ideas why is this cash for?
    They have now enough to cover the debt.
    Acquisitions probable?
  • C
    CHUCK
    Short term stock traders is bringing down BZUN. The sooner they exit the stock the better for long term investors. BZUN business is solid and growing.