07:15 AM EST, 02/29/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

2023 earnings per ADS (EPADS) of CNY14.66 (+48%, partly aided by share buyback) beat our expectation. Revenue grew 9% to CNY112.8 bln, with a recovery in customers' spending driving volume growth. Net margin rose 1.1 ppts to 7.2% due to improved sales mix and lower general and administrative expenses, which compensated for higher marketing costs. We forecast revenue to grow 4%-5% p.a. in 2024-2025 on our projected increase in the number of active customers (2023: +3.9%) and a pick-up in consumer discretionary spending. We expect net margin to stabilize at about 7.2%-7.5% in 2024-2025 as cost optimization efforts will balance an increase in marketing spending (to entice buyers amid intensifying competition in the e-commerce space). We lift our projected 2024 EPADS to CNY15.26 (from CNY13.72) and introduce 2025's of CNY16.69. Our target price of USD21 (from USD16) is 9.8x 2024 EPADS estimate (5-year mean: 10.5x), reflecting our projected lower 2-year EPADS CAGR of 7% (5-year CAGR: 35%).