Vipshop(US:VIPS) CMS·2025-10-09 08:25Investment Rating - The report maintains a "Strong Buy" rating for Vipshop (VIPS.N) [3][5][6] Core Insights - The revenue trend for Q3 is expected to align with guidance, achieving positive growth, with a projected year-on-year increase of 2%. The improvement is noted in both the wearable and standard product categories, alongside a steady increase in user growth and stable profitability, with a Non-GAAP net profit margin expected to remain around 7% [2][5][6] - The long-term brand value and consumer base of the company are solid, supported by its competitive edge in the branded discount sector and continuous enhancements in supply chain capabilities and marketing strategies. The core customer base is steadily expanding, with SVIP users showing double-digit year-on-year growth [2][5][6] Financial Data and Valuation - The projected main revenue for 2023 is 112.856 billion CNY, with a year-on-year growth of 9.4%. The Non-GAAP net profit is expected to be 9.510 billion CNY, reflecting a 39.1% increase [3][9] - The target valuation is set at 25.29 USD, with the current stock price at 20.45 USD, indicating a potential upside [3][5] - Key financial metrics include a projected PE ratio of 7.6 for 2023 and a return on equity (ROE) of 19.36% [4][10] User and Product Trends - Q3 is anticipated to show improvements in user trends, with overall user numbers expected to return to positive year-on-year growth. The recovery in consumer sentiment and enhanced procurement capabilities are contributing factors [2][5] - The wearable category is expected to perform better, with women's and men's apparel, as well as shoes and bags, showing signs of recovery in year-on-year growth [2][5]