BSTI posted better than expected numbers.
BSTI posted better than expected numbers earlier today, as the Chinese company reported revenue of $1 billion versus the consensus estimate of just above $843 million. Their net loss was below $18 million, which was an improvement of around 3 times. Gross profit was over $74 million. BEST Inc. stock was up over 7% at the close.
BEST Inc. was founded in 2007 by Shao-Ning Chou, who is also their Chairman and CEO. As their statement suggests: “We are a leading and fastest-growing Smart Supply Chain service provider in China. Our multisided platform combines technology, integrated logistics and supply chain services, last-mile services and value-added services.”
The company is backed by Alibaba. The e-commerce giant owns a 27% stake of BSTI. This seems to be a fruitful combination between the two companies. China is ultimately the largest logistics market in the world and being able to profit from this will serve them both well. While BEST Inc. loses money, their growth is staggering.
This is a definite buy at any time the market is open. Anyone backed by BABA is a winner.