JD.com (JD); 9618 HK

[winston]

JD.com (9618 HK)
1Q24: Solid Earnings Beat; High Single-digit Revenue Growth On Track

JD’s 1Q24 revenue grew 7% yoy to Rmb260b, slightly better than our and consensus estimates.

Gross profit margin improved 47bp yoy to 15.3% in 1Q24.

Non-GAAP operating profit rose 11% yoy to Rmb9b, translating to non-GAAP operating profit
margin of 3.5%.

Non-GAAP net profit came in at Rmb8.9b, beating our and consensus expectations, as a result of streamlining of operations.

Adjusted net margin was 3.4%.

Maintain BUY with a higher target price of HK$151.00 (US$40.00).

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

Broker│Opinion

Nomura│Retail business recovered, buybacks accelerated

Jefferies│Subscriber growth and participation trend stable, supply chain capability demonstrated

JPMorgan│Upside risk on short-term earnings, but market share outlook uncertainty limited valuation

Huatai Securities│Returned to organic growth, revenue growth continued to accelerate

UBS│Quarterly results beat, profitable growth delivered

Goldman Sachs│Healthy profit margins at JD Retail and JD Logistics resulted in profit beat

Citi│618 shopping festival and electrical appliances trade-in policy are catalysts

BOCI│Quarterly results beat, FMCG business resumed growth after restructuring

HSBC Global Research│Earnings growth certainty strengthened

CICC│Supermarket and advertising revenues recovered, profit growth beat

Daiwa│Profit margins beat, supermarkets propelled growth

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

Earnings First Take: 1Q24 core earnings grew 17.2%, ahead of market expectations

JD retail revenue increased by 6.8% y/y in 1Q24, supported by steady growth of both electronics and general merchandise segments

Non-GAAP net profit increased by 17.2% y/y, above market expectations on higher operating efficiency

Expect growth momentum to continue in FY24, supported by 3C and FMCG segment; Maintain BUY

TP: HK$175

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=19640

[winston]

vested

JD.com Inc
Revenue growth to pick up in FY24F

JD reported yoy revenue growth of 7% to Rmb260bn in 1Q24, slightly below our estimate, due to weak marketplace revenue growth on lower monetization rate.

Non-GAAP net profit reached Rmb8.9bn for 1Q24, up 17.2% yoy, beating our forecast, driven by higher GPM due to faster general merchandise revenue growth.

We expect JD’s “everyday low price” strategy and continuous improvements in its 3P ecosystem to further boost revenue growth and stabilise its market share in FY24F.

(JD.com's GMV is divided into two parts: the 1P and 3P business. 1P mainly refers to the self-operated business, which generated 89% revenue in 2019, while 3P represents third-party platform business).

We forecast revenue to grow 8.3% and non-GAAP net profit up by 2.9% in FY24F.

We lift our FY24-26F EPS forecasts and reiterate our Add call, with a lower DCFbased TP of HK$201 (WACC: 13.4%, TG: 3%, Beta: 1.2).

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 9086DDD7D2

[winston]

JD-SW (09618.HK) Reiterates Focus on '35711' Vision for Next 20 Yrs

On the 10th anniversary of its listing on Nasdaq today (22 May), JD-SW (09618.HK) issued a press release reiterating that in the next 20 years, the company will focus on its "35711" vision.

Specifically, the vision includes having 3 companies with revenues exceeding trillions of RMB and net profits exceeding RMB70 billion, 5 companies listed in the Fortune 500, 7 listed companies that are started from stretch and achieve market capitalisations of not less than RMB100 billion, to be able to pay RMB100 billion in taxes for the country, and to provide more than 1 million jobs.

Related News: CCBI Elevates JD-SW (09618.HK) TP to $156.1 on Solid Outlook

Source: AAStocks

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

<Research>UBS Highlights Accelerated Rev. Growth at JD-SW (09618.HK) (JD.US); Valuation Undemanding

UBS noted in a report that JD-SW (09618.HK) (JD.US) 's general merchandise revenues will be a growth driver this year from a normal base, especially in the supermarket category, benefiting from the company's business optimisation.

Revenue from electronics and home appliances will face a relatively high base of comparison.

The broker noted that while revenue growth may be affected by the macro outlook, incremental policy support such as the real estate and home appliance trade-in programs may accelerate growth.

The broker also noted that JD management remained focused on profitable growth, relying on efficiency advantages rather than subsidies.

In terms of gross margin, management expected sustainable momentum going forward from enhanced sourcing efficiencies and a favourable product mix in general merchandise, offset by lower realisations from third-party merchants.

For operating expenses, there should be a manageable increase in the selling and marketing expense ratio.

Related NewsHSBC Research: JD Issue of CB May Hurt Recent Shr Price Sentiment; MEITUAN/ TENCENT/ NTES/ PDD Remain Preferences

Overall, the broker believed JD could deliver stable earnings this year and expected the improvement in profitability to come later in the year, based on cost base from 2H23, increased contribution from third-party merchants and effect of scale.

UBS considered JD's valuation to be undemanding and rated it Buy, with a target price of US$40 for US-listed ADRs and HK$156 for Hong Kong-listed shares.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

<IPO>JD Property Halts HK IPO; JD Industrials at 'Supplementary Material' Stage of Filing Process - Report

A source at JD-SW (09618.HK) has been quoted as saying that due to the downturn in China's property sector, JD Property has suspended its plan to list in Hong Kong and will wait for the right time to restart the IPO.

The listing process for JD Industrials is still underway and will list in Hong Kong first if the timing is right.

In March last year, JD announced the spin-off of its two subsidiaries, JD Industrials and JD Property, for listing.

According to the public documents of the China Securities Regulatory Commission (CSRC), JD Property is no longer on the list of overseas listing filings, and the filing status of JD Industrials is still in the "Supplementary Material" stage.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

<Research>G Sachs Predicts JD-SW (09618.HK) 2Q24 Rev. Growth to Keep Slowing, Citing Higher Base in 2Q23

Goldman Sachs expected in a research report that JD-SW (09618.HK) revenue growth will continue to slow to about 5% YoY in 2Q24, compared to market consensus of growing 6%, as well as the 7% growth reported in 1Q24, given the higher base in 2Q23.

The broker maintained its 2024 forecasts of 6% YoY revenue growth and 7% YoY group net profit growth, with a return to YoY net profit growth in 2H24.

Even though Goldman adjusted its sub-sector preference for e-commerce due to soft online spending trends in June and flat short-term earnings from JD Retail, the broker identified more opportunities in the sector starting in 2H24, citing a lower base, an inflexion point in earnings from 2H, advertising technology potential and operational leverage across the sector, as well as the e-commerce sub-sector having the largest valuation discount to Chinese dotcom sector and global e-commerce peers.

The broker recently met with JD's management, in which they discussed the recent 6.18 trend and Mainland consumer preferences, competition among e-commerce companies, key drivers of the company's growth, profit forecasts to 2024, as well as shareholder return policy and the recent issuance of convertible bonds (CBs).

Management mentioned that the company's expectation of mid-to-high single-digit sales growth for the full year remained unchanged, forecasted JD Retail's full-year profit to be flat or growing, and noted confidence in its long-term gross merchandise volume (GMV) margin potential of 3%.

Goldman has a target price of HK$161 for JD's Hong Kong shares and US$41 for its US shares, with Buy ratings maintained for both.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN