Yunji (YJ) AI Stock Analysis

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Yunji

(NASDAQ:YJ)

Rating:44Neutral

Price Target:

$2.00

▲(7.53%Upside)

Yunji's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and profitability issues. Technical analysis provides some balance with slightly positive momentum signals, but the poor valuation further weighs down the score. The lack of earnings call data or significant corporate events means these factors do not influence the score.

Yunji (YJ) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$9.16M

Dividend YieldN/A

Average Volume (3M)36.63K

Price to Earnings (P/E)―

Beta (1Y)-0.18

Revenue Growth-35.95%

EPS Growth26.08%

CountryUS

Employees363

SectorConsumer Cyclical

Sector Strength60

IndustrySpecialty Retail

Share Statistics

EPS (TTM)N/A

Shares Outstanding2,550,640

10 Day Avg. Volume86,152

30 Day Avg. Volume36,635

Financial Highlights & Ratios

PEG Ratio17.73

Price to Book (P/B)347.17

Price to Sales (P/S)0.00

P/FCF Ratio-1.52K

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Yunji Business Overview & Revenue Model

Company DescriptionYunji Inc. operates a social e-commerce platform in the People's Republic of China. It offers a range of product categories that cater various daily needs of users and their households, including beauty and personal care, household goods, cloths, food and fresh produce, computer and electronics, apparel, bags and cases, baby and maternity products, and home appliances. Yunji Inc. was founded in 2015 and is headquartered in Hangzhou, the People's Republic of China.

How the Company Makes MoneyYunji makes money primarily through its membership fees and sales of products on its platform. Members pay a subscription fee to access exclusive deals and discounts, which generates a steady revenue stream. Additionally, the company earns revenue from the sale of products, taking a margin on each transaction facilitated through its platform. Yunji also collaborates with suppliers and brands to offer a range of unique products, which can enhance its revenue through strategic partnerships and exclusive offerings. The company’s focus on social engagement and community building helps increase customer retention and encourages word-of-mouth marketing, further driving sales and revenue.

Yunji Earnings Call Summary

Earnings Call Date:May 29, 2025

(Q4-2024)

% Change Since: 16.25%|

Next Earnings Date:Aug 21, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted significant improvements in gross margin and user engagement through innovative product offerings and wellness programs. However, these positive developments were overshadowed by a notable decline in total revenue and increased operating expenses, leading to a widened net loss.

Q4-2024 Updates

Positive Updates

Improved Gross Margin

Yunji's overall gross margin improved to 49.4% in 2024, indicating better cost management and customer loyalty.

Strong User Repurchase Rate

The user repurchase rate remained strong at 71.9%, showcasing customer trust and satisfaction with Yunji's products.

Growth in Private Label Product Sales

Sales of Yunji's private label organic health products, such as probiotics, reached nearly RMB 5 million in Q4 2024 and over RMB 6 million in Q1 2025. Additionally, the new life coffee generated sales of over RMB 5 million shortly after its launch.

Success of SUYE Pro Firming Series

The SUYE Pro firming skincare series generated over RMB 20 million in total sales, demonstrating strong demand for high-value skincare solutions.

Introduction of Innovative Wellness Programs

Yunji introduced the tea therapy program, which combines tea tasting, meditation, and traditional Chinese studies, achieving a 91% retention rate among participants and fostering strong user engagement.

Negative Updates

Decline in Total Revenue

Total revenue decreased to RMB 97.1 million from RMB 149.2 million a year ago, driven by refinements to the product range and optimization of the supplier network.

Increased Operating Expenses

Total operating expenses increased to RMB 126.2 million from RMB 109.8 million, primarily due to severance payments and impairment charges on long-lived assets.

Widened Net Loss

Net loss increased to RMB 85 million from RMB 65.9 million a year ago, with an adjusted net loss of RMB 84.5 million.

Company Guidance

During the Fourth Quarter 2024 Earnings Conference Call, Yunji provided guidance highlighting several key metrics and strategic initiatives. The company reported an overall gross margin improvement to 49.4% with a robust user repurchase rate of 71.9%. Sales of their probiotic product reached nearly RMB 5 million in Q4 2024 and over RMB 6 million in Q1 2025, while their new life coffee achieved over RMB 5 million in sales within 1.5 months of its launch. Yunji's private label brand, SUYE, introduced the SUYE Pro firming series, generating over RMB 20 million in sales in 2024, and plans to expand with the SUYE Pro solution in 2025. Additionally, the company launched a tea therapy program, which saw a 91% retention rate from its first 150 participants, and plans to expand by recruiting 1,000 tea enthusiasts by June. Financially, Yunji's total revenue was RMB 97.1 million, a decrease from RMB 149.2 million the previous year, with a net loss of RMB 85 million compared to RMB 65.9 million a year ago. The company emphasized cost optimization efforts, including reductions in fulfillment and technology expenses, while addressing increased short-term expenses to enhance operational efficiency. As of December 31, 2024, Yunji held RMB 242.8 million in cash and short-term investments, aiming for financial prudence and strategic investments to foster sustainable growth.

Yunji Financial Statement Overview

Summary

Yunji's financial performance is concerning, with significant revenue decline, consistent unprofitability, and poor cash flow management. The stable balance sheet with low leverage is overshadowed by declining revenues and profitability challenges.

Income Statement

Negative

Yunji has experienced significant revenue decline from 2019 to 2024, with a sharp decrease in total revenue from 11.67 billion to 417.65 million. Gross profit margin has weakened over time, reflecting reduced operational efficiency. Notably, the company has consistently reported negative EBIT and net income, indicating ongoing unprofitability. The revenue growth rate has been negative, which is a major concern for potential investors.

Balance Sheet

Neutral

The balance sheet shows a high equity base with an equity ratio of approximately 80%, indicating financial stability. However, the persistent negative net income has resulted in a declining return on equity over the years. The company maintains low debt levels, reflected in a favorable debt-to-equity ratio, which suggests limited financial risk from leverage. Despite these strengths, the erosion of equity due to continuous losses is a concern.

Cash Flow

Negative

Yunji's cash flow statement highlights poor cash flow management, with consistent negative operating and free cash flow, indicating a lack of internal cash generation capacity. The free cash flow has deteriorated significantly over the years, raising sustainability concerns. Additionally, the negative operating cash flow to net income ratio suggests inefficiencies in converting revenue to cash, further emphasizing liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	779.75M	417.65M	640.21M	1.15B	2.16B	5.53B
Gross Profit	356.02M	206.34M	307.44M	502.54M	811.98M	1.59B
EBITDA	-75.53M	-103.53M	-141.07M	-70.85M	18.65M	-65.39M
Net Income	-130.60M	-123.11M	-165.13M	-131.34M	131.97M	-147.86M
Balance Sheet
Total Assets	1.67B	1.35B	1.55B	1.89B	2.35B	2.55B
Cash, Cash Equivalents and Short-Term Investments	528.93M	219.37M	524.74M	626.64M	947.26M	1.20B
Total Debt	18.56M	11.65M	14.50M	1.31M	8.69M	15.30M
Total Liabilities	406.81M	274.41M	362.69M	536.51M	871.46M	1.24B
Stockholders Equity	1.27B	1.08B	1.19B	1.36B	1.48B	1.31B
Cash Flow
Free Cash Flow	0.00	-318.62M	-200.67M	-309.08M	-112.97M	-345.92M
Operating Cash Flow	0.00	-126.08M	-188.26M	-216.82M	-25.99M	-261.51M
Investing Cash Flow	0.00	-166.33M	294.04M	92.56M	-513.79M	551.01M
Financing Cash Flow	0.00	-13.32M	-25.33M	-94.56M	-463.00K	-13.88M

Yunji Technical Analysis

Technical Analysis Sentiment

Positive

Last Price1.86

Price Trends

50DMA

1.70

Positive

100DMA

1.74

Positive

200DMA

1.80

Positive

Market Momentum

MACD

0.06

Negative

RSI

53.49

Neutral

STOCH

12.28

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YJ, the sentiment is Positive. The current price of 1.86 is above the 20-day moving average (MA) of 1.82, above the 50-day MA of 1.70, and above the 200-day MA of 1.80, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 53.49 is Neutral, neither overbought nor oversold. The STOCH value of 12.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for YJ.

Yunji Risk Analysis

Yunji disclosed 93 risk factors in its most recent earnings report. Yunji 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 0 New Risks

Yunji Peers Comparison

Overall Rating

UnderperformOutperform

Sector (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	¥253.34B	13.18	6.44%	2.78%	5.06%	-11.83%
BWMX	61 Neutral	$323.16M	10.77	42.07%	15.60%	-5.05%	-55.00%
JWEL	52 Neutral	$5.86M	―	-37.82%	―	-16.89%	31.24%
EVGO	47 Neutral	$1.09B	―	19.14%	―	45.15%	-2.91%
WNW	44 Neutral	$5.99M	0.21	14.87%	―	-98.14%	-5486.59%
YJ	44 Neutral	$9.16M	―	-10.86%	―	-35.95%	26.08%
NVVE	43 Neutral	$10.23M	―	-1026.66%	―	-24.26%	93.83%

* Consumer Cyclical Sector Average

Performance Comparison

Yunji

1.86

-1.10

-37.16%

BWMX

Betterware de Mexico

8.66

-3.63

-29.54%

NVVE

Nuvve Holding

0.98

-5.34

-84.49%

WNW

Meiwu Technology Company Limited

1.89

-12.58

-86.94%

EVGO

EVgo

3.54

0.72

25.53%

JWEL

Jowell Global

2.70

0.70

35.00%

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 05, 2025