Source: Beast Finance Author: Beast Finance
Business and Fundamentals
Dajian Cloud Warehouse (GCT) is a B2B trading platform engaged in the export of international large-ticket commodities such as large household appliances, household appliances, fitness equipment and gardening. It is the world's leading international trade digital service provider. Relying on its international business structure, its own global logistics warehousing system and precise data marketing analysis system, it provides online or offline comprehensive cross-border transaction and delivery services for global large-ticket commodities, and builds a "global home furnishing backbone network".
(Source: Dajian Yuncang Financial Report)
(Source: Dajian Yuncang Financial Report)
Dajian Yuncang has been improving its profitability, with net profit nearly tripling year-on-year despite revenue growing only 23.5% during the same period. This suggests they are activating operating leverage in their business.
(Dajian Cloud Warehouse’s profit and loss statement for the second quarter)
(Source: Dajian Yuncang Financial Report)
Dajian Yuncang also approved a $25 million share repurchase. Beast Finance believes this is just the icing on the cake on top of its strong fundamentals, and also implies that management believes its stock is undervalued.
Dajian Yuncang currently has no debt and has a huge cash reserve of US$181.5 million, which Mengshou Finance believes will help reduce the risks faced by its stocks.
Dajian Yuncang's current price-to-book ratio is 2.22, its price-to-earnings ratio is 10.84, its price-to-sales ratio is 0.88, and its annual revenue growth rate exceeds 20%. Relative to its market value, Dajian Yuncang's cash balance is large, and No debt. Beast Finance believes that all these indicators indicate that Dajian Yuncang is seriously undervalued by the market.
The company also currently has growth plans, and management has a sense of urgency about the company's future development.
(Source: Dajian Yuncang Financial Report)
Stock price trend
Dajian Yuncang's stock price has been rising this year, and the reason for the rise may be due to their relatively strong fundamentals. It is worth noting that the proportion of outstanding shares of Dajian Yuncang is very low, about 14%, which may intensify the stock price fluctuations of Dajian Yuncang. Investors should pay attention to this, because once short-term fluctuations occur, its stock price may There will be a sharp decline.
Risks faced by Dajian Cloud Warehouse
Beast Finance believes that one of the risks faced by Dajian Yuncang is the risk of macroeconomic slowdown, because once the economy slows down, the revenue and profits of Dajian Yuncang will decrease.
Another risk is that there may be problems with Dajian Yuncang's accounts, or there may be VIE problems, and this risk cannot be completely eliminated until Dajian Yuncang's US company is re-registered and audited.
Dajian Yuncang currently operates in Hong Kong and is audited by a Chinese company. The company also adopts a VIE investment structure, which brings potential additional risk factors to its investments in China and the reliability of its reported financial information. Being questioned.
But luckily for investors, the company is in the process of moving its registration to the United States and will be audited by an American company after that.
Therefore, we believe that investors should wait for the registration change of Dajian Yuncang to be completed and audited by an American company before making any plans.
If all goes well, this could instill confidence among investors and could lead to an increase in Dajian Yuncang's valuation.
in conclusion
Although the fundamentals of Dajian Yuncang are very good, the stock price has risen sharply, and the current valuation is also very attractive, before the company successfully moves its registration place to the United States and passes the audit of an American company, we have It has a wait-and-see attitude.