Baozun Inc (BZUN)

[FairviewInvestor]

Baozun has set itself as an industry fave for global brands trying to gain an e-commerce foothold in China. There are now 156 major brands on its platform, and there's model affirmation and validation with every new entry in Baozun's Rolodex. The slow top-line growth is deceptive. Baozun is shifting away from a distribution model to a consignment one, a strategy that will trade revenue growth for margin expansion and bottom-line growth. Its latest quarter was a combination of an 8% decline in product sales revenue more than offset by a 50% pop in services revenue. Put another way, the stock is more attractive than its surface fundamentals.

Rick Munarriz owns shares of Sogou Inc. The Motley Fool owns shares of and recommends Baidu. The Motley Fool owns shares of Baozun.