New Street Research - Dada Nexus Ltd (DADA US) DADA Findings of Independent Review: Implications to JD.com

Report

New Street Research

Jin Yoon

DADA Findings of Independent Review: Implications to JD.com

What’s New: DADA announced the results of the previously disclosed independent review regarding certain suspicious practices that were identified during its routine internal audit – which is now substantially completed. In addition to reversing the overstated revenues and associated operations and support costs in 9M23, DADA has prepared a remediation plan including but not limited to 1) disciplinary actions to selected employees including replacing the company’s president; 2) terminating contracts with suppliers and customers that were part of the transactions; 3) enhancement of internal controls; and 4) conducting additional training to address the issue.

We lower our PT from USD15 to USD2 and downgrade the stock from BUY to NEUTRAL rating. Our updated PT of USD2 implies 0.01x FY24 EV/Revs. Despite further clarifications from the independent review, it could take a while for the stock to regain traction as it would take time to win back investors’ trust. Furthermore, small-cap stocks could continue to lag large-caps in an environment where China remains out of favor among investors.

Analysts:
Jin Yoon

06/03/2024 1 EN

Underlying

Dada Nexus Ltd

See profile

Provider

New Street Research

Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

Pan European Telecom Services and Cable
US Telecoms, Cable, Satellite and Towers
Global Emerging Market Telecoms
Japan Telecoms
Asian Internet
Pan European Healthcare
Global healthcare thematic research

We provide debt research on:

Pan European Telecom Services and Cable

See profile

Analysts

Jin Yoon

Other Reports on these Companies

New Street Research

DADA 4Q23 Results: Near-Term Visibility Limited Amid Ongoing Biz Adjustments

What’s new: As the new management has only been established for less than a month, it would take time for the new team to review each business line and make appropriate adjustments. Hence, visibility could remain limited in the near-term. We maintain our PT at USD2.0 and maintain our NEUTRAL rating. While long-term fundamentals remain intact, it would take time for the stock to gain traction and to win back investors’ trust. Analysts: Jin Yoon

March 27, 2024 March 27, 2024 1 EN

New Street Research

DADA 3Q23 Results: Business to Remain Resilient in FY24

What's new: Dada Nexus’ reported 3Q revs were largely in-line with consensus estimates. Guidance reflects strong Singles Day performance which is partly offset by the soft demand environment in Oct due to Golden Week holiday and uncertainties heading into the 2H of 4Q. We maintain our PT at USD15 and maintain our BUY rating. Analysts: Jin Yoon

November 17, 2023 November 17, 2023 1 EN

Altice Model Update

This note focuses mostly on model changes. Please see separate notes reviewing results and on thoughts following the earnings call. The Company needs to stabilize EBITDA and reduce debt to reclaim equity value. They are making (slow) progress on the first. The second is possible via discounted exchanges, but it won’t be easy. We remain on the sidelines.

EUR 9318.00

5h / 47m 5h / 47m 1 EN

Soomit Datta

Soomit Datta

MELI US (Buy, TP: $1,800, +25%) Q1 24 - Argentina really is in the price now, Brazil and Mexico profitability well ahead

Adjusting for an accounting change group revenue was 5% ahead, whilst EBIT beat by 11%. The revenue beat came from Fintech, and in turn from Acquiring (on-line called out) rather than Credit.

EUR 9318.00

6h / 20m 6h / 20m 1 EN

Jonathan Chaplin

Jonathan Chaplin

ATUS: quick thoughts following the call

In this brief note we cover 1) the prospect for discounted debt exchanges; 2) our evolving thoughts on ABS; 3) the path to ARPU and EBITDA stability; 4) Altice’s decision to overbuild Comcast in NJ; and 5) the normal stuff on broadband market growth, ACP, Altice’s adds, and the investment case.

EUR 9318.00

13h / 23m 13h / 23m 1 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

DADA Findings of Independent Review: Implications to JD.com

DADA 4Q23 Results: Near-Term Visibility Limited Amid Ongoing Biz Adjustments

DADA 3Q23 Results: Business to Remain Resilient in FY24

Altice Model Update

MELI US (Buy, TP: $1,800, +25%) Q1 24 - Argentina really is in the price now, Brazil and Mexico profitability well ahead

ATUS: quick thoughts following the call

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe