Dada Nexus gains most in 3 months on strong revenue, buyback plan

Dada Nexus

08/06/2021 12:14

** U.S.-listed shares of online Chinese grocery firm
 DADA.O  up 10.45% to $28.43 premarket, eyes best day since
March 9 
    ** Co's Q1 revenue of 1.67 bln yuan ($261.06 mln) beats
Refinitiv est of 1.49 bln yuan, on growth in Dada Now service's
order volume to logistics companies and intra-city delivery
service to chain merchants  urn:newsml:reuters.com:*:nGNX7ByGgp
    ** DADA's total gross merchandise volume of JDDJ segment was
28.1 bln yuan as of March 31, while active consumers were 46.1
mln
    ** However, co posts a wider-than-expected Q1 loss of 2.60
yuan​​/shr on higher sales and operating expenses
    ** Dada forecasts Q2 total revenue between 1.4 bln yuan and
1.45 bln yuan, also higher than Street expectations
    ** Separately, co announces up to $150 mln share buyback
program at open market prices, and will fund repurchase in cash
 urn:newsml:reuters.com:*:nGNX3z635H
    ** Nine of 11 brokerages covering the stock rate it "buy" or
higher, and 2 "hold"; their median PT is $45.97 -  Refinitiv
data
    ** Stock down 29.5% YTD


($1 = 6.3970 Chinese yuan renminbi)

 (Reporting by Devik Jain in Bengaluru)
 ((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780;
outside U.S. +91 80 6182 2062; ;))