Page 182 - RusRPTMay21

presence
Customers can place their orders in the separate online store us.wildberries.ru, as well as through mobile applications for iOS and Android. For customers' convenience, the site and apps are available in English and Russian.
Wildberries offers about 5.5mn items from 40,500 brands: women's, men's and children's clothing, footwear and accessories, beauty, toys, electronics, books and stationery, sports goods, and household goods. In the future, the international online retailer will offer its new customers even more different products both at more affordable prices and in the premium segment.
Orders will be delivered with the help of logistics partners. Wildberries customers from the USA can get their purchases by courier delivery to their home or office.
USA became the company's 14th country of presence. In 2021, Wildberries also started sales in Germany, France, and Italy, and in 2020 the large international online retailer entered Poland, Slovakia, Israel, and other countries.
In 2020, Wildberries' sales outside of Russia increased 95% year-on-year to 23.7bn rubles. The most popular items among foreign customers were clothing, beauty, books and shoes.
EPAM has added 25% from its trough of early March. While we continue to see the company as a strong long-term fundamental story, we think that the short-term potential for further appreciation of the stock is largely exhausted. In particular, we do not see EPAM’s 2021-22F P/E multiples of 41-55x (non-GAAP) as attractive entry points. Having left our forecasts unchanged, we are increasing our 12-month Target Price 1% to USD 425, which reflects a pure technical effect of our model being rolled forward. This implies an ETR of 0%, which underpins our downgrade of the stock from Buy to Hold. What are potential extra tailwinds? In our previous reports, we have discussed in detail the strong fundamentals EPAM enjoys – and is set to enjoy in the post-pandemic environment (see our EPAM – Upgrade to Hold; back to strong growth of 18 January, and EPAM – Upgrade to Buy on recent correction of 9 March for more details). Meanwhile, we believe that that these fundamentals are largely priced in. In addition to that, we see two areas that could bring extra benefits to EPAM: i) potential value accretive acquisitions and ii) price increases, driven by high demand, the expiration of price discounts that the company provided to its clients during the pandemic and rising inflationary pressures. We note that due to limited information, our model does not include the recent acquisition of PolSource, which might result in some 1% of initial value accretion to EPAM, based on our preliminary estimates (see our EPAM –
182 RUSSIA Country Report May 2021 www.intellinews.com