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GigaCloud Stock: High Growing B2B E-Commerce With High ROIC (NASDAQ:GCT)

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Investment thesis

GigaCloud Technology (NASDAQ:GCT) is a high growing Chinese company, which experienced a significant sell-off as a consequence of its too lofty valuation back in 2021. I believe the company is surrounded by high uncertainty as we can’t

GigaCloud 3P seller GMV

GigaCloud Technology

Company's buyer GMV

GigaCloud Technology

GigaCloud business model

GigaCloud Technology

KPI 2019 2020 Growth YoY 2021 Growth YoY
Gross merchandise volume (GMV) $35.46 $190.5 437% $414.2 117%
Active 3P sellers 71 210 196% 382 82%
Active buyers 441 1689 283% 3566 111%
Spend per active buyer $80.42 $112.77 40% $116.15 3%

2019 2020 2021
Revenue $122.29 $275.4 $414.2
Gross margin 18.1% 27.2% 21.6%
Operating margin 4% 16% 9.5%
Net margin 2.3% 13.6% 7%

Metric 2019 2020 2021 Q1 2022 Q2 2022 Q3 2022

GigaCloud 3P % of total revenue

12.4% 21.8% 23.7% 27.8% 26.4% 31.6%
GigaCloud 1P % of total revenue 34.5% 44.3% 45.5% 48.2% 48.9% 45.4%
Off-platform % of total revenue 53.1% 33.9% 30.8% 24% 24.7% 22.8%