GigaCloud Technology Inc. (GCT) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Shares of this company have returned +11.6% over the past month versus the Zacks S&P 500 composite's +2% change. The Zacks Technology Services industry, to which GigaCloud Technology Inc. belongs, has gained 1.6% over this period. Now the key question is: Where could the stock be headed in the near t ...

Investment Rating - Maintain Buy rating with a target price of $46 based on SOTP valuation [2][12] Core Views - GigaCloud (GCT US) delivered a strong Q1 2024 performance with revenue growth of 96% YoY, beating expectations by 3% [2] - Net profit in Q1 2024 was $27 million, up 71% YoY but 10% below expectations due to new fulfillment center costs and FX volatility [2] - Management guided Q2 2024E revenue of $265-280 million, representing 73-83% YoY growth, with the midpoint 9% above expectations [2] - Positive margin trends expected in 2H24E driven by narrowing NH losses, annual freight contracts, and improved warehouse utilization [2] - BaaS initiative launched in April 2024 is expected to unlock TAM and drive long-term incremental growth [2] Financial Performance - Q1 2024 revenue was $251 million, up 96% YoY, with gross profit of $67 million and net profit of $27 million [2][7] - FY24E revenue is forecasted at $1.112 billion, up 58% YoY, with net profit of $116 million [2][10] - FY25E revenue is projected at $1.353 billion, up 22% YoY, with net profit of $150 million [2][10] - FY26E revenue is estimated at $1.632 billion, up 21% YoY, with net profit of $188 million [2][10] Operational Highlights - Global fulfillment network expanded to 42 locations covering over 10.5 million square feet, up 169% from March 2023 [2] - Outdoor furniture demand is expected to drive Q2 2024E revenue growth [2] - BaaS program charges a competitive 4% fee compared to the industry standard of 10% [2] Valuation - SOTP valuation based on 18x P/E for 3P business and 16x P/E for 1P business, resulting in a target price of $46 [12] - DCF valuation assumes a WACC of 15.7% and long-term growth rate of 3%, also supporting the $46 target price [13][14] Historical Performance - FY23 revenue grew 44% YoY to $704 million, with net profit up 293% YoY to $94 million [10] - FY22 revenue increased 18% YoY to $490 million, with net profit of $24 million [10] - FY21 revenue was $414 million, with net profit of $29 million [10]

Investment Rating - The report maintains a "BUY" rating for GigaCloud (GCT US) with a target price of US$46, representing a 23.2% upside from the current price of US$37.35 [5][12]. Core Insights - GigaCloud delivered strong 1Q24 results with revenue growth of 96% YoY, reaching US$251 million, and net profit of US$27 million, up 71% YoY. The net profit margin slightly declined due to expenses from new fulfillment centers and foreign exchange fluctuations [2][4]. - The company expects 2Q24 revenue to be between US$265 million and US$280 million, indicating a growth of 73% to 83% YoY, driven by increased demand for outdoor furniture and an expanding fulfillment network [2][4]. - GigaCloud's global fulfillment network has expanded to 42 locations with over 10.5 million square feet, a 169% increase compared to March 31, 2023, which supports robust growth in both first-party and third-party business [2][4]. - The launch of the BaaS (Business as a Service) program is anticipated to unlock total addressable market (TAM) opportunities and enhance engagement between buyers and sellers, with a competitive fee structure [2][4]. Financial Summary - Revenue is projected to grow from US$704 million in FY23 to US$1,112 million in FY24, with further increases to US$1,353 million in FY25 and US$1,632 million in FY26 [17]. - Net profit is expected to rise from US$94 million in FY23 to US$116 million in FY24, reaching US$150 million in FY25 and US$188 million in FY26 [17]. - The gross margin is forecasted to stabilize around 27% for FY24E to FY26E, while the net margin is expected to improve from 10.4% in FY24E to 11.5% in FY26E [12][17]. Valuation - The report employs a sum-of-the-parts (SOTP) valuation method, estimating the equity value at US$1,896 million, leading to a target price of US$46 based on a 16x FY24E P/E multiple [13][14]. - A discounted cash flow (DCF) analysis suggests a target price of US$46, with a terminal value of US$2,356 million, assuming a WACC of 15.7% and a long-term growth rate of 3% [14][15].

Core Insights - GigaCloud Technologies operates a B2B technology platform called "GigaCloud Marketplace" that connects suppliers and resellers globally, with a strong focus on logistics for cross-border transactions [2] - The company reported significant revenue growth, with Q1 2024 revenue reaching $251 million, nearly doubling from $127.8 million in the previous year, and expects continued growth in Q2 2024 [3] - GigaCloud's acquisition of Noble House for $77.6 million enhances its logistics capabilities and expands its North American warehouse capacity by nearly 50% [5][7] Financial Performance - GigaCloud's gross merchandise value (GMV) increased by 64.0% year-on-year to $907.7 million, with third-party sellers accounting for 54% of total volume [3] - Net income rose from $15.9 million to $27.2 million, a 71.1% increase, with diluted EPS at $0.66 for the quarter [3] - The company's P/E ratio stands at 17.4x for TTM and 13.7x forward, indicating a favorable valuation compared to the sector median [9] Strategic Developments - The launch of the "Branding as a Service" (BaaS) program allows manufacturers to sell products under established brands, enhancing margins and revenue potential [7][8] - GigaCloud's logistics network has surpassed 10 million square feet, with a new fulfillment center set to open in July 2024 [10] - The company is diversifying its supplier base by signing new product suppliers from Colombia, Mexico, and Turkey to mitigate geopolitical risks [10] Growth Outlook - Analysts project EPS to reach $3.65 by 2025, with potential stock valuation at $66 based on sector median earnings multiple [10] - GigaCloud's revenue growth rate of 43.6% year-over-year significantly outpaces the sector median of 2.9% [9] - The company has a solid balance sheet with cash and investments totaling $196.2 million and is virtually debt-free, supporting its growth initiatives [9]

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GigaCloud Technology. (NASDAQ:GCT) Q1 2024 Earnings Conference Call May 9, 2024 8:00 AM ET Company Participants Larry Wu - Chairman, Chief Executive Officer Iman Shrock - President David Lau - Chief Financial Officer Conference Call Participants Matt Koranda - Roth MKM Sophie Huang - CMBI Brian Kintslinger - Alliance Global Partners Operator Thank you all for standing by. Welcome to GigaCloud Technology’s First Quarter 2024 Earnings Conference Call. During today’s call all listeners will be in listen-only m ...

GigaCloud Technology Inc. (GCT) came out with quarterly earnings of $0.84 per share, beating the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 64.71%. A quarter ago, it was expected that this company would post earnings of $0.58 per share when it actually produced earnings of $0.87, delivering a surprise of 50%.Over the last four quarters, the co ...

GigaCloud Technology (GCT) Q1 2024 Earnings Call May 09, 2024 08:00 AM ET Speaker0 Thank you all for standing by. Welcome to Giga Cloud Technologies First Quarter twenty twenty four Earnings Conference Call. During today's call, all participants will be in listen only mode. Joining us today from Giga Cloud Technology are the company's Founder, Chairman and CEO, Larry Wu its President, Doctor. Iman Sharat and its Chief Financial Officer, David Lau. Iman will give a performance and operational review, and Dav ...

Table of Contents _____________________ _____________________ _____________________ _____________________ Cayman Islands 00-0000000 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) Title of Each Class Trading Symbol Name of Each Exchange on Which Registered Class A ordinary shares, par value $0.05 per share GCT The Nasdaq Stock Market LLC UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION ...