I was right to chose BABA over VIPS two years ago.
But Now VIPS is so ridiculously cheap that I do believe it is definitely time to enter.
| Trailing P/E | 18.26 |
| Forward P/E 1 | 10.36 |
Is so cheap for an hi tech company that grows that much:
| Revenue (ttm) | 9.65B |
| Revenue Per Share (ttm) | 16.53 |
| Quarterly Revenue Growth (yoy) | 30.30% |
This was said about its Aug Earning report:
“Vipshop’s total net revenue increased by 30.3% to RMB17.52 billion (US$2.58 billion) for Q2 2017 compared with net revenue of RMB13.44 billion in Q2 2016, primarily driven by the growth in the number of total active customers, repeat customers, and total orders.”
Vipshop’s number of active customers for Q2 2017 increased by 22% to 28.1 million on y-o-y basis. The Company’s total active customers for the trailing twelve months ended June 30, 2017, reached 58.8 million, representing a 32% y-o-y increase. For Q2 2017, Vipshop’s total orders had increased by 23% to 84.8 million y-o-y.
Vipshop’s gross profit grew by 19.1% to RMB3.86 billion (US$569.4 million) for Q2 2017 from RMB3.24 billion in Q2 2016. The Company’s gross margin was 22.0% versus 24.1% in the prior year’s comparable period, primarily attributable to investment in promotional activities for market share gain.
Vipshop could continue gorowing by itself or be bought by larger Tencent or Alibaba.
Eaither way it is a bargain to get Forward P/E = 10 for an esplosive 30% growth giant.
BUY, SELL, KEEP 
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