- December 08, 2020
BlueCity reported Q3 revenue of RMB297.6mn, up 47.3% YoY/20.3% QoQ. Overall MAU was 6.3mn, an increase of 7.0% from Q3FY19, but a slight decline from 6.4mn last quarter. The sequential weakness was due to expansion uncertainties in the overseas markets, but this impact was offset to some extent by the improvement from proactively streamlining business process. Thanks to higher operating efficiency from streamlining business process, adj. EBIT turned profit. We maintained our FY20E full year revenue unchanged at RMB1.07bn. As the strategic realignment is being carried out in overseas market and the leading position in China market is strengthened by recent strategic M&A deals, we hold an upbeat outlook on BlueCity’s LT growth and reiterate Buy with a PT of US$20.1, which implies a 2.1x FY21E P/S.
