GigaCloud(US:GCT) Haitong Securities·2024-08-31 04:23Investment Rating - The investment rating for the company is "Outperform the Market" [4] Core Views - The company reported a significant increase in revenue for Q2 2024, achieving $31 million, a year-on-year growth of 103.01%. Net profit reached $2.7 million, up 46.65%, with a net profit margin of 8.68%, a decrease of 3.33 percentage points year-on-year. Adjusted EBITDA was $4.3 million, reflecting a 72% increase [1] - The Gross Merchandise Volume (GMV) for GigaCloud Marketplace reached $1.098 billion, marking an 80.7% year-on-year growth. The number of active third-party sellers increased to 930, a 39.8% rise, while active buyers reached 7,257, up 66.8%. The spending per active buyer was $151,300, an 8.4% increase year-on-year [2] Summary by Sections Financial Performance - For Q2 2024, the company achieved a comprehensive gross margin of 24.59%, a decrease of 1.77 percentage points year-on-year. The sales, management, and R&D expense ratios were 6.26%, 8.45%, and 1.00%, respectively, with year-on-year increases of 0.03, 3.95, and 0.65 percentage points [5] - Revenue from products was $230 million, a 105% increase. GigaCloud 1P generated $102 million, up 47%, while third-party e-commerce platforms contributed $123 million, a 206% increase. Service revenue was $85 million, a 97% increase [5] Earnings Forecast and Valuation - The net profit forecast for 2024 and 2025 has been revised down to $107 million and $158 million, respectively. The current closing price corresponds to a PE ratio of 8.6 and 5.9 times for 2024 and 2025. The reasonable value range based on comparable companies is estimated at $38.9 to $46.6, with a rating of "Outperform the Market" [5][6] Market Comparison - The report includes a comparison of similar companies, indicating that the average PE for 2024 is 14 times, with the company being valued at a lower PE ratio compared to its peers [7]