Jinwu Financial News | According to Shen Wan Hongyuan Research Report, Taobo (06110) released operating data for the third quarter of FY25, and the performance was in line with expectations. In FY25Q3 (September-November '24), the company's total sales before tax fell year on year. The performance was in line with expectations. The performance of the 10-20% low decline in the previous quarter (FY25Q26-August) improved markedly (all data comes from company announcements), showing a downward upward trend. Looking at it by channel, online sales are superior to offline, and Double Eleven achieved outstanding performance. Inventory levels have remained steady, and discount rates have deepened in the short term.
According to the bank, the company is deeply involved in the sportswear retail business, focusing on the high-quality growth of global retail, and creating a diversified growth curve through brand expansion. Deeply cooperated with two major brands, NIKE and Adidas. Retail operation capabilities were outstanding, channel optimization and upgrading improved quality and efficiency, and new brands continued to expand their contributions. Short-term adjustments will not change the medium- to long-term positive trend. I am optimistic that in the future, as the brand side breaks out of the trough and the consumer environment improves, the company will return to high-quality growth with excellent retail operation capabilities. Maintaining the profit forecast, the net profit for FY25-FY27 is expected to be 1.32/1.67/1.93 billion yuan, corresponding to PE of 12/10/8 times, maintaining the purchase rating.
