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Baozun, Inc. Class A (HK:9991)
:9991
Hong Kong Market
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Baozun, Inc. Class A (9991) AI Stock Analysis

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HK:9991

Baozun, Inc. Class A

(9991)

Rating:56Neutral
Price Target:
HK$8.50
▲(3.66%Upside)
Baozun, Inc. shows potential with positive technical momentum and promising strategic initiatives from the earnings call. However, significant financial performance challenges and valuation concerns weigh heavily on its overall score.

Baozun, Inc. Class A (9991) vs. iShares MSCI Hong Kong ETF (EWH)

Baozun, Inc. Class A Business Overview & Revenue Model

Company DescriptionBaozun, Inc. Class A (9991) is a leading e-commerce service partner in China, specializing in providing integrated digital commerce solutions to help brands and retailers succeed in the Chinese market. The company operates in diverse sectors including fashion, electronics, and consumer goods, offering a comprehensive suite of services such as online store operations, digital marketing, customer service, and warehousing and fulfillment.
How the Company Makes MoneyBaozun makes money through a multi-faceted revenue model primarily driven by service fees, product sales, and other value-added services. The company charges service fees for its end-to-end e-commerce solutions, which include online store setup, digital marketing, and customer service management. Additionally, Baozun earns revenue from product sales, where it purchases products from brands and sells them through various online platforms. The company also generates income from value-added services such as IT solutions, warehousing, and logistics support, which enhance the efficiency and effectiveness of its e-commerce operations. Key partnerships with international brands and local e-commerce platforms contribute significantly to Baozun's earnings, enabling it to leverage its expertise in the Chinese digital commerce landscape.

Baozun, Inc. Class A Earnings Call Summary

Earnings Call Date:May 21, 2025
(Q1-2025)
|
% Change Since: -5.75%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Neutral
Baozun demonstrated solid revenue growth and strategic advancements, especially in brand management and sustainability. However, profitability challenges and slight declines in certain service segments indicate potential areas of concern. Despite these challenges, the overall performance and future outlook remain promising.
Q1-2025 Updates
Positive Updates
Overall Revenue Growth
Baozun Group achieved a 4% year-over-year revenue growth with E-Commerce revenue growing slightly by 1.4% to RMB1.7 billion and Brand Management revenue increasing by 23% to RMB387 million.
BBM Sales Surge
Baozun Brand Management (BBM) achieved a 23% year-on-year sales growth, driven by improvements in key operating metrics and strong performance of the Gap brand.
E-Commerce Segment Performance
E-Commerce product sales grew by 7%, driven by standout categories like Home & Furniture, Alcohol, and Health & Nutrition, with a gross profit margin improvement of 130 basis points.
Sustainability Achievements
Baozun achieved a 36% reduction in Scope 1 and 2 carbon emissions versus the base year 2021, on track to reduce by 50% by 2030.
Gap Brand Success
Gap China continued to innovate and grow, with both online and offline channels delivering strong results. Notable marketing initiatives included collaboration with Forbidden City, generating RMB10 million in sales.
Negative Updates
Profitability Challenges
Adjusted loss from operations totaled RMB67 million, including a decline of RMB58 million in the E-Commerce segment due to low seasonality and strategic investments.
Gross Margin Decrease in BBM
Gross margin for BBM decreased to 51.6% from 53.1% a year ago, primarily due to product offering adjustments and optimization of commercial plans for the Gap brand.
Logistics and IT Service Decline
Revenue from warehouse and logistics, as well as digital marketing and IT services, each declined by a middle single-digit year-over-year.
Company Guidance
During Baozun's First Quarter 2025 Earnings Conference Call, the company provided guidance indicating a 4% year-over-year revenue growth, with E-Commerce revenue rising slightly by 1.4% to RMB1.7 billion and Brand Management revenue showing a robust growth of 23% to RMB387 million. The company highlighted the performance of its E-Commerce and Brand Management segments, noting that the gross margin for E-Commerce product sales expanded by 130 basis points to 15%, driven by product mix diversification, while BBM's gross margin stood at 51.6%. Despite an adjusted operating loss of RMB67 million, the company emphasized strategic investments in quality development and omnichannel capabilities to transform customer engagement. Baozun also reported a significant reduction in carbon emissions, achieving a 36% reduction in Scope 1 and 2 emissions since 2021. The call underscored the company's focus on leveraging technology for operational efficiency and long-term value creation, with plans to open new stores and further enhance brand management strategies.

Baozun, Inc. Class A Financial Statement Overview

Summary
Baozun, Inc. faces significant financial challenges. Although there are improvements in gross profit margins and revenue growth, the company struggles with profitability, with negative net profit margin and declining EBITDA and EBIT margins. The balance sheet is moderately stable with improved leverage, but cash flow management is weak, with low operating cash flow to net income ratio and fluctuating free cash flow.
Income Statement
45
Neutral
Baozun, Inc. shows a mixed performance in its income statement. The gross profit margin has increased from previous years, indicating improved efficiency in managing direct costs. However, the company is struggling with profitability, as evidenced by a negative net profit margin and declining EBITDA and EBIT margins over recent years. Revenue growth is positive but has been inconsistent, reflecting potential volatility in sales performance.
Balance Sheet
50
Neutral
The balance sheet illustrates a moderate position for Baozun, Inc. The debt-to-equity ratio has improved slightly, indicating better leverage management, though it remains relatively high. The equity ratio is stable, suggesting a balanced asset structure. However, return on equity is negative due to ongoing net losses, which poses a risk to shareholder value.
Cash Flow
40
Negative
Cash flow statements reveal challenges in Baozun, Inc.'s cash management. The operating cash flow to net income ratio is low, indicating inefficiencies in converting revenue to cash. Additionally, free cash flow has fluctuated significantly over the years, with a concerning downturn in recent periods, potentially limiting growth opportunities and operational flexibility.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.42B8.81B8.40B9.40B8.85B
Gross Profit4.49B3.90B3.42B3.46B3.27B
EBITDA142.71M75.95M-326.85M109.78M600.05M
Net Income-185.20M-278.42M-606.79M-209.26M425.99M
Balance Sheet
Total Assets10.21B10.47B10.12B12.32B10.47B
Cash, Cash Equivalents and Short-Term Investments2.56B2.87B3.04B4.61B5.03B
Total Debt2.06B2.75B2.41B3.98B2.80B
Total Liabilities4.43B4.62B4.45B5.84B4.34B
Stockholders Equity3.91B4.10B4.08B5.94B6.11B
Cash Flow
Free Cash Flow-106.99M218.05M123.36M-448.89M151.44M
Operating Cash Flow101.28M448.25M382.61M-96.11M310.01M
Investing Cash Flow-817.61M-340.37M-1.31B375.82M-616.37M
Financing Cash Flow-19.74M-8.03M-1.65B749.95M2.67B

Baozun, Inc. Class A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.20
Price Trends
50DMA
7.54
Positive
100DMA
7.53
Positive
200DMA
7.68
Positive
Market Momentum
MACD
0.14
Negative
RSI
55.28
Neutral
STOCH
46.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9991, the sentiment is Positive. The current price of 8.2 is above the 20-day moving average (MA) of 7.51, above the 50-day MA of 7.54, and above the 200-day MA of 7.68, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 55.28 is Neutral, neither overbought nor oversold. The STOCH value of 46.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9991.

Baozun, Inc. Class A Risk Analysis

Baozun, Inc. Class A disclosed 114 risk factors in its most recent earnings report. Baozun, Inc. Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We may incur impairment charges for our goodwill. Q4, 2023
2.
Our plans to innovate, expand our product offerings and successfully implement our growth strategies may not be successful, and implementation of these plans may divert our operational, managerial and administrative resources, which could harm our competitive position and reduce our revenue and profitability. Q4, 2023
3.
We are subject to changing laws and regulations regarding regulatory matters, corporate governance and public disclosure that have increased both our costs and the risk of non-compliance. Q4, 2023

Baozun, Inc. Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
HK$2.30T16.2113.02%1.68%4.74%73.72%
79
Outperform
HK$417.17B8.1619.79%3.09%7.67%90.63%
74
Outperform
HK$46.60B17.5624.95%2.98%9.37%-6.70%
73
Outperform
$785.73B17.7123.82%19.20%156.71%
57
Neutral
HK$26.15B4.16-2.03%5.83%-0.24%-68.05%
56
Neutral
HK$1.41B-4.60%5.61%29.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9991
Baozun, Inc. Class A
8.20
2.05
33.33%
HK:9988
Alibaba Group Holding Ltd.
117.10
40.88
53.63%
HK:9896
MINISO Group Holding Ltd.
39.25
8.05
25.80%
HK:9618
JD.com, Inc. Class A
126.90
29.48
30.26%
HK:3690
Meituan
127.40
18.20
16.67%

Baozun, Inc. Class A Corporate Events

Baozun Inc. Announces Successful AGM Resolutions
Jun 18, 2025

Baozun Inc. announced the successful passing of all proposed resolutions at its annual general meeting held on June 18, 2025. Key resolutions included the adoption of audited financial statements for 2024, re-election of directors, authorization of directors’ fees, and re-appointment of KPMG as the company’s auditor. The approval of these resolutions reflects strong shareholder support and is expected to positively impact Baozun’s governance and operational stability.

The most recent analyst rating on (HK:9991) stock is a Buy with a HK$7.74 price target. To see the full list of analyst forecasts on Baozun, Inc. Class A stock, see the HK:9991 Stock Forecast page.

Baozun Inc. Announces Board Composition and Governance Structure
May 21, 2025

Baozun Inc. announced the composition of its board of directors and their respective roles within the company. The board includes both executive and independent directors, with Mr. Vincent Wenbin Qiu serving as the Chairman and CEO. The announcement also details the membership of various board committees, highlighting the company’s governance structure. This update reflects Baozun’s commitment to maintaining a robust governance framework, which is crucial for its strategic operations and stakeholder confidence.

The most recent analyst rating on (HK:9991) stock is a Buy with a HK$7.74 price target. To see the full list of analyst forecasts on Baozun, Inc. Class A stock, see the HK:9991 Stock Forecast page.

Baozun Inc. Updates Governance Committee Charter to Strengthen Board Diversity and Independence
May 21, 2025

Baozun Inc. has updated its Nominating and Corporate Governance Committee Charter to enhance its board selection and governance processes. The amendments, effective May 21, 2025, aim to ensure a diverse and independent board composition, aligning with NASDAQ and HKSE requirements. This move is expected to strengthen Baozun’s governance framework, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (HK:9991) stock is a Buy with a HK$7.74 price target. To see the full list of analyst forecasts on Baozun, Inc. Class A stock, see the HK:9991 Stock Forecast page.

Baozun Inc. Announces New Appointment to Governance Committee
May 21, 2025

Baozun Inc. has announced a change in the composition of its nominating and corporate governance committee, with Ms. Bin Yu being appointed as a new member effective May 21, 2025. This appointment reflects the company’s ongoing efforts to enhance its governance structure, potentially impacting its strategic decision-making process and stakeholder engagement.

The most recent analyst rating on (HK:9991) stock is a Buy with a HK$7.74 price target. To see the full list of analyst forecasts on Baozun, Inc. Class A stock, see the HK:9991 Stock Forecast page.

Baozun Inc. Reports First Quarter 2025 Financial Results with Strategic Growth
May 21, 2025

Baozun Inc. announced its unaudited financial results for the first quarter of 2025, highlighting a 4% increase in topline growth and a 23% year-over-year acceleration in Brand Management revenue. Despite a loss from operations, the company is making strides in its strategic transformation, with improvements in operational excellence and diversification of revenue streams. The company remains optimistic about its future growth, driven by disciplined management and investments in technology and AI-powered commerce.

The most recent analyst rating on (HK:9991) stock is a Buy with a HK$7.74 price target. To see the full list of analyst forecasts on Baozun, Inc. Class A stock, see the HK:9991 Stock Forecast page.

Baozun Inc. Announces 2025 Annual General Meeting Agenda
May 16, 2025

Baozun Inc. has announced its upcoming Annual General Meeting (AGM) scheduled for June 18, 2025, in Hong Kong. The meeting will cover several key resolutions, including the adoption of the 2024 financial statements, re-election of directors, re-appointment of KPMG as auditor, and authorization for the board to manage share capital activities. These resolutions are crucial for maintaining corporate governance and ensuring the company’s strategic flexibility in managing its share capital, which could impact its market positioning and shareholder value.

The most recent analyst rating on (HK:9991) stock is a Buy with a HK$7.74 price target. To see the full list of analyst forecasts on Baozun, Inc. Class A stock, see the HK:9991 Stock Forecast page.

Baozun Inc. Schedules Board Meeting to Approve Q1 2025 Financial Results
May 7, 2025

Baozun Inc. announced that its board of directors will meet on May 21, 2025, to approve the company’s unaudited financial results for the first quarter ended March 31, 2025. The results, prepared in accordance with U.S. GAAP and SEC rules, will be published before the U.S. market opens and after Hong Kong trading hours. An earnings conference call will follow, providing an opportunity for stakeholders to discuss the results with management, potentially impacting the company’s market positioning and investor relations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2025