Baozun (BZUN) Stock

Baozun Inc. (NASDAQ:BZUN ) Q1 2024 Earnings Conference Call May 28, 2024 7:30 AM ET Company Participants Wendy Sun - Senior Director of Corporate Development and Investor Relations Vincent Qiu - Founder, Chairman and Chief Executive Officer Catherine Yanjie Zhu - Chief Financial Officer Arthur Yu - President of Baozun E-Commerce Sandrine Zerbib - President of Baozun Brand Management Conference Call Participants Alicia Yap - Citigroup Colin Shan - CITIC Securities Weijia Wu - CICC Sophie Huang - CMBI Thomas Chong - Jefferies Operator Good morning, ladies and gentlemen, and thank you for standing by for Baozun's First Quarter 2024 Earnings Conference Call. At this time, all participants are in the listen-only mode.

Baozun, a China-based e-commerce facilitator serving more than 450 brands worldwide, has seen its stock decline by more than 55% in the last year, largely due to negative market sentiment and consumer challenges in China. I see BZUN as a compelling investment at its current price of $2.4, with a one-year price target of $3.3, representing a potential gain of over 37%.

Baozun's shares have been undervalued due to disappointing Q4 2023 earnings, but the company is now considered attractively valued based on its Enterprise Value-to-Revenue ratio. The company is expected to bounce back this year with improvements in profitability for its brand management segment and the introduction of a new brand for its e-commerce segment. The negative impact of its poor fourth quarter performance has already been factored into the stock price, and a strong financial performance in 2024 could potentially boost Baozun's stock.

Baozun Inc.'s new $20 million share repurchase plan was well received by the market, as evidenced by its +17.3% stock price surge on January 24, 2024. Baozun's Gap China business, which was acquired in January last year, is expected to improve its gross margin in FY 2024 and turn profitable in FY 2025. I keep my Buy rating for Baozun unchanged in view of its new share repurchase program and the financial prospects for its Gap China business.

Baozun Inc. (NASDAQ:BZUN ) Q3 2023 Earnings Conference Call November 22, 2023 6:30 AM ET Company Participants Wendy Sun - Senior Director of Corporate Development and Investor Relations Vincent Qiu - Chairman and Chief Executive Officer Arthur Yu - Chief Financial Officer and President of Baozun E-Commerce Sandrine Zerbib - President of Baozun Brand Management Conference Call Participants Alicia Yap - Citigroup Thomas Chong - Jefferies Sophie Huang - CMBI Operator Good morning, ladies and gentlemen, and thank you for standing by for Baozun's Third Quarter 2023 Earnings Conference Call. At this time, all participants are in listen-only mode.

Baozun missed on revenue, but exceeded earnings expectations for its second quarter of 2023. Management acknowledged the "challenging" macroeconomic environment, but also pointed to progress across each of Baozun's three core segments.

Like other Chinese e-commerce stocks, Baozun is struggling in the current environment. The company beat estimates, but investors still seem skeptical of its restructuring into three divisions.