News Alert: Sep 2022 GMV increased by 22% y-o-y to HK$665m, better than market expectations
- GMV increased by 22% y-o-y to HK$665m in Sep, better than market expectations, benefiting from government consumption vouchers
- Average order volume increased by 26% to 51,500
- Expect the company to beat the full-year GMV guidance of HK$8bn
- Expect positive share price reaction on better-than-expected GMV growth
What’s New
– HKTV (1137 HK) announced its Sep operating statistics after HK market close on 11 Oct.
– GMV in Sep 2022 increased by 22% y-o-y to HK$665m (vs 14% in Aug 2022), better than market expectations.
– GMV y-t-d grew by 30% yoy to HK$6,204m.
– Average daily order number in Sep 2022 increased by 26% to 51,500, implying 1% m-o-m decrease.
– Average order value decreased by 2% y-o-y to HK$438.
– Number of unique customers who make purchases increased by 12% y-o-y to 550k.
– The robust GMV growth has been benefited from the disbursement of government consumption vouchers since Aug 2022.
Our View:
– Expect positive share price reaction on better-than-expected GMV growth.
– The company has guided HK$8bn GMV target for FY22 (or 23% growth), implying a flat GMV growth for Oct-Dec 22 (vs 17% yoy for Oct-Dec 21).
– We believe the company could beat the full-year GMV given the robust demand for online purchases, which reaffirmed the structural change in consumer behaviour migrating from offline to online.
– We maintain BUY with TP of HK$13.7 as HKTV remains the key beneficiary of increasing demand for online shopping.