JD.com (JD), 9618 HK; 02 (Mar 23 - Dec 26)

[winston]

JD Industrials makes third attempt at Hong Kong IPO

JD Industrials has made a third attempt at an initial public offering in Hong Kong after its second failed bid in September last year.

The industrial technology and service provider was launched in 2017 as an independent unit of its parent JD.com (9618) and was featured on the e-commerce giant homepage as a main category by 2018.

As a business-to-business platform for industrial products, the company was the largest player in China’s maintenance, repair, and operations procurement services market by gross merchandise value last year—nearly three times the size of its closest competitor, according to China Insights Consultancy.

Its GMV grew from 22.3 billion yuan in 2022 to 28.8 billion yuan in 2024, with a compound annual growth rate of 13.5 percent.

The company said it will use the funds raised to further enhance its industrial supply chain capabilities, expand its business across geographies, and pursue potential strategic investments or acquisitions, according to its prospectus.

STAFF REPORTER

Source: The Standard

https://www.thestandard.com.hk/breaking ... g-Kong-IPO

[winston]

not vested

1Q25 Preview: Benefitting From Trade-in Scheme; Limited Impact From US Tariffs

JD’s 1Q25 top-line growth and earnings guidance remained unchanged at double-digit growth, slightly better than our expectations.

JD also saw strong user growth and GMV growth in 1Q25 as it is well positioned to capture the continuation of the trade-in programme.

JD highlighted its minimal revenue exposure to the US, implying limited
impact from the US tariffs.

Maintain BUY with an unchanged target price of HK$220.00 (US$60.00).

Source: UOBKH

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

[winston]

1Q25F topline growth likely to be in line

JD's management hosted a 1Q25F preview call on 10 Apr 2025.

We expect topline and non-GAAP net profit to grow at double-digit yoy in 1Q25F, driven by solid growth of home appliances, mobile phone and general merchandise.

It kept FY25F guidance of topline and net profit rising by high single digits you.

Reiterate Add, with a DCF-based TP of HK$209 (WACC: 13.4%, TG: 3%).

Limited exposure to the US market

Management said JD has very limited exposure to the US market. Its overseas expansion is mainly in the logistics business in Europe, Asia and the Middle East. However, JD’s nonGAAP NPM may not achieve strong expansion in FY25F due to its investment for food delivery business. Management kept its non-GAAP NPM target in the high-single-digit range in the long term (FY24: 4.1%).

Source: CGS

https://rfs.cgsi.com/api/download?file= ... A857777495

[winston]

not vested

JD-SW Introduces 'Hundred-Billion' New Product Growth Plan

The "2025 JD New Product Annual Gala" was held in Beijing today (16th).

To underscore its strategic focus on the new product market and commitment to driving brand merchant growth, JD-SW (09618.HK) officially unrolled the JD New Product Growth "Hundred-Billion" Campaign.

The initiative allocates 10 billion traffic resources and RMB10 billion in funding for 2025, with comprehensive upgrades to marketing and digital capabilities.

Related News: Daiwa Predicts Minimal Impact on JD-SW from Tariffs; ST Rev. Outlook Vigorous

It aims to achieve annual sales toppling RMB1 million for 60,000 new products, RMB10 million for 6,000 new products, and RMB100 million for 600 new products.

Source: AAStocks Financial News

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

[winston]

vested

China’s on-demand services market to see ‘clash of titans’ as JD.com takes on Meituan

JD.com will hire 50,000 fast delivery workers as an initial step in facing off against on-demand services giant Meituan.

JD said it aimed to cut average delivery times to below 30 minutes, meaning a customer can expect to receive the purchased item within half an hour of placing an online order.

Source: SCMP

https://www.scmp.com/tech/big-tech/arti ... pe=section

[winston]

not vested

JD.com first-quarter profit surges 53pc to 10.9b yuan

First-quarter net profit surged 53 percent to 10.9 billion yuan (HK$11.8 billion), despite its new business unit’s operations loss nearly doubling due to delivery business.

Quarterly revenue totaled 301.08 billion yuan for the quarter ending in March, up 15.8 percent from a year earlier,

Adjusted net profit rose 43.4 percent to 12.76 billion yuan from the same period a year ago,

The loss of new business expanded 98 percent to 1.33 billion yuan, from 670 million yuan in the first quarter in 2024.

Source: The Standard

https://www.thestandard.com.hk/market/article/302381/

[winston]

not vested

1Q25: Strong Earnings Beat; Intact 2025 Outlook; Vague Visibility On Food Delivery

JD’s 1Q25 results came in above expectations.

Revenue increased 16% yoy to Rmb301b, 3-4% above our and consensus estimates, in line with its previously guided double-digit growth.

Non-GAAP operating profit rose 31% yoy to Rmb11.7b, translating to a non-GAAP operating profit margin of 3.9%.

Non-GAAP net profit grew 43% yoy to Rmb12.8b.

Adjusted net margin jumped 1ppt yoy to 4%.

Maintain BUY with a lower target price of HK$185.00 (US$49.00).

Source: UOBKH

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

[winston]

not vested

JD.com (9618 HK / JD US) - Solid core business

Summary (9618 HK): JD reported strong 1Q25 results with both revenue and adjusted net profit beating consensus estimates and rising 16% and 43% year-on-year (YoY), which was 4% and 20% ahead of consensus estimates respectively.

The better-than-expected results were driven by ongoing growth acceleration and margin expansion in core business.

Overall gross profit margin expanded to 15.9% largely driven by improving category mix and increasing service revenue.

Adjusted net profit margin was 4.2%, expanding further from 3.4% in 1Q24 and 3.3% in 4Q24.

JD’s investment in the food delivery business has seen a faster-than-expected ramp up with food delivery order volumes rising close to 20m/day recently, representing about one-third of Meituan (3690 HK) and around the same level with Alibaba’s (9988 HK) Eleme.

Despite the fast-than-expected ramp up, management did not give guidance for food delivery budgets and the impact on overall group profit on the back of dynamic competitive landscape in food delivery business.

JD has demonstrated solid growth across its core business segments.

Management expect positive momentum in electronics and home appliance categories will sustain in 2Q25 and is confident in sustaining the double-digit YoY growth in in supermarkets and fashion categories in light of the 618 campaign.

In our view, JD should continue to be a key beneficiary to the upsized consumer goods trade-in program with an expanded product category despite high-base effect will kick-in in 2H25.

That said, concerns about its food delivery investment remains in place despite a faster-than-expected ramp up.

Management raised revenue growth target to a double-digits percentage YoY increase this year but no guidance on profit growth.

That said, it reiterated its long-term target in achieving high single-digit net margin.

The stock is trading at 7x forward price-to-earnings (P/E), which is close to its trough valuation and is lower than its e-commerce peers of 8-12x forward P/E.

We believe the depressed valuation should have more or less reflected concerns about potential earnings drag from food delivery investment and the risk-reward remains attractive.

We anticipate a tactical trading opportunity in the near-term when the valuation gap with its peers narrows.

We adjust our fair value estimate to HKD200, reflecting initial investment in food delivery business, which is based on sum-of-the-parts (SOTP) methodology, implying a 11x forward P/E multiple.

Source: OCBC

[winston]

not vested

Good 1Q25 results, but uncertainty for food delivery

1Q25 revenue reached Rmb301bn (+15.8% yoy), above our expectation, mainly driven by its trade-in programme and good performance of its supermarket segment.

Non-GAAP net profit was Rmb12.8bn (+43.4% yoy), above our expectation, due to stronger revenue, better GPM, and improved opex control.

Management raised its revenue growth guidance for 2Q25F and FY25F to double digit yoy growth (previously high single-digit for FY25F).

We expect revenue to grow 11.6% and non-GAAP net profit to drop 10.5% in FY25F.

Reiterate Add, with a lower DCF-based TP of HK$188.

Source: CGS

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://rfs.cgsi.com/api/download?file=1800259f-df9b-44d2-b0bf-2b26406f8d3c&rpt=7D773020-8233-57F4-3533-975DC0CA7EB8

[winston]

not vested

JD.com first-quarter profit surges 53pc to 10.9b yuan

Quarterly revenue totaled 301.08 billion yuan for the quarter ending in March, up 15.8 percent from a year earlier,

Adjusted net profit rose 43.4 percent to 12.76 billion yuan from the same period a year ago, beating the estimate of 10.37 billion yuan.

The loss of new business expanded 98 percent to 1.33 billion yuan, from 670 million yuan in the first quarter in 2024.

Source: The Standard

https://www.thestandard.com.hk/market/article/302381/