Today, Singapore Bisheng Asset Management released a short report for JD.com. This is also the second time that the agency issued a short report for Jingdong. In June last year, the short report issued by the agency led to a sharp drop in the stock price of Jingdong. In the following year, Jingdong not only achieved annual profit, but also the highest stock price. Breaking through the $43.8 mark, the market value is approaching $60 billion. However, after the release of this short report today, Jingdong's stock price did not fall back, indicating that investors actually do not agree with their views.
An analyst who has long tracked China's e-commerce industry told reporters that the report released by Bisheng Assets has many fundamental flaws in the knowledge of the Chinese market and the retail industry. For example, the report believes that Jingdong’s self-employed 3C and home appliance business are not profitable because of thin profits and fierce price competition. In fact, they do not understand that Jingdong’s model is based on an efficient operational efficiency. For example, before Jingdong entered the field of household appliances, almost all home appliance companies had only 1-2% of meager profits, and Jingdong’s adoption of household appliances. Online retailing drastically reduced channel costs. Not only did Jingdong Home Appliances achieve profitability, it also drove the entire home appliance industry to achieve a 4-5% net margin. Similarly, the report believes that JD’s valuation is as high as US$60 billion and the P/E ratio is more than 410 times. It is a tulip bubble story. And it is precisely ignored, even if the valuation method for most of Amazon's analysts is DCF or PS, rather than PE. If you look at PE, then Amazon's PE in 12-15 years is as much as 600 times. The source pointed out that for such a high-growth and steady improvement of JD.com, the market will naturally give a fair valuation judgment.
The report pointed out that the sale of Jingdong shares by Gaochun Capital indicated that the close-knit institution in Jingdong expressed concern about Jingdong’s prospects. Some people close to Jingdong told reporters that Gaochun Capital was a pre-listed shareholder of JD. Holding the Jingdong Equity for 7 years, the gradual withdrawal of the Pre-IPO shareholders after the listing is the normal mode of profit of the fund. However, Gaochun Capital still holds the majority of its Jingdong stocks, has its pace of lightening up, and has balanced positions. For any fund company, it is very normal. Similarly, the person pointed out to reporters that overseas institutions are keen to make a sharp contrast between the Jingdong model and the Amazon model, which led to the publication of this short report. If the report follows the logic of this report, there should be no successful retail company in the world. Only successful technology companies. Although Amazon has AWS, but there is no distribution network, and Jingdong is just the opposite, this does not explain the superiority, it can only explain that in different market environments, different choices of enterprise development, enlarge the Amazon's strengths, and thus to Jingdong The conclusion of high valuation and no prospect is absurd in itself.
It is reported that this is not the first time that Chinese Internet companies have encountered short-term foreign forces. In 2011 and 2014, there was a wave of over-the-air stocks. Among them, the number of medium-term stocks that were suspended for a long period of time in 2011 and have already been withdrawn from the market reached 46, but many Chinese stocks have been attacked for no reason, and short-selling institutions have also formed a complete industrial chain - from Markets borrow stocks to sell, and when stocks fall, they then buy back the same number of stocks from the market, earning a special profit from the middle. However, this short-selling institution in Singapore, both short-selling reports, chose Jingdong’s 618 big push with Alibaba’s fierce PK. This time’s “coincidence†also made this report more controversial.
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