China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Yahoo Still Falling Further Behind Amazon and Rakuten

Yahoo Shopping up and Rakuten Ichiba Down

Z Holdings (4689.JP) Upgrade to BUY: Leaner Business Lines with PayPay Drives Growth

[Blue Lotus Japanese E-Commerce Sector Update]: Facing the Competition from Chinese ECommerce STAT

Z Holdings: Yahoo Shopping Falling Further Behind Amazon and Rakuten

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>ZHD reported F1Q/C2Q23 top-line, non-GAAP operating profit and non-GAAP net profit in-line, in-line and (32%) vs. consensus, respectively. Earnings miss was driven by wider tax expense.  </li>
<li>ZHD’s B2C e-commerce platform GMV continued to decline, which we suspect is due to the continued impact of STAT, especially Shein.</li>
<li>We maintain SELL and raise TP to JPY 340 due to improved ads-spending, but we expect the transient ad spend increase to be offset by loss of ecommerce customers. </li>
</ul>


ZHD reported F1Q/C2Q23 top-line, non-GAAP operating profit and non-GAAP net profit in-line, in-line and (32%) vs. consensus, respectively. Earnings miss was driven by wider tax expense.  
ZHD’s B2C e-commerce platform GMV continued to decline, which we suspect is due to the continued impact of STAT, especially Shein.
We maintain SELL and raise TP to JPY 340 due to improved ads-spending, but we expect the transient ad spend increase to be offset by loss of ecommerce customers. 


[Z Holdings (4689 JP, SELL, TP JPY 340) Target Price Change]: Continued Impact of Chinese E-Commerce

LY

[Z Holdings (4689 JP, SELL, TP JPY 340) Target Price Change]: Continued Impact of Chinese E-Commerce