JD.com (JD), 9618 HK; 01 (May 15 - Feb 23)

[winston]

JD.com to spin off logistics arm for US$4b

by Avery Chen

JD.com's (9618) logistics unit will file for its Hong Kong initial public offering as soon as this month, aiming to raise US$4 billion (HK$31.2 billion), IFR reported.

The spinoff, JD Logistics, is targeting a valuation of US$40 billion, the report said. The company plans to start trading in the second quarter.

The offshoot of Chinese e-commerce giant JD.com would be the second subsidiary of the parent company to be spun off and listed in Hong Kong, following JD Health International (6618), which completed a HK$31 billion IPO last month.

JD.com is also planning to spin off JD Digits, the company's fintech arm, in Shanghai Star Market to raise around 20 billion yuan (HK$24.01 billion).

UBS, Bank of America and Haitong Securities will be the sponsors for JD Logistics' IPO.

UBS and BofA also sponsored JD.com's HK$34.5 billion secondary listing in June, the largest listing in Hong Kong in 2020.

In 2018, the division raised US$2.5 billion in a funding round from investors including Hillhouse Capital Group, Sequoia Capital China, China Merchants Group, Tencent (0700), and China Life Insurance (2628). The deal valued JD Logistics at US$13.5 billion.

Source: The Standard

https://www.thestandard.com.hk/section- ... -for-US$4b

[winston]

not vested

JD.Com (JD US): Trade the upcoming IPO in HK
RE-ITERATE BUY Entry – 89 Target – 110 Stop Loss – 80

JD is an online direct sales company in China. The Company offers a wide selection of products through its website and mobile applications.

JD sells appliances, computers, digital products, communication products, garments, books, and household items to consumers and vendors.

The upcoming catalyst is the pending JD logistics IPO in HKEX. The spin-off of the sub-business segment is expected to increase the parent company’s valuation.

Market consensus of net profit growths in FY21 and FY22 are 36.4x%YoY and 39.8% YoY, which implies forward PERs of 41.8x and 29.9x. Current PER is 57x.

Big tech companies recently sold off due to rising interest rates, which has raised concerns of faster-than-expected inflation. However, we believe this is a short-term panic-sell down as Fed Chair Powell mentioned it could take three years for the US to reach the 2% inflation target, and that the Fed has multiple tools to rein in inflation. In the long-term, tech giants remain the key economic drivers, and their growth prospects are better off if inflation kicks in.

Source: KGI

[winston]

vested

JD.COM

Chinese e-commerce giant JD.Com (NASDAQ:JD) will report its fourth-quarter earnings on Thursday, Mar. 11, before the market opens.

Analysts are predicting $0.19 a share earnings on sales of $33.9 billion.

The internet retailer's earnings are set to be released as the company plans to list its shipping business, JD Logistics, in Hong Kong, raising potentially billions of dollars to capitalize on China’s post-COVID e-commerce boom, Bloomberg reported last month.

The initial public offering could raise roughly $5 billion and value the unit at about $40 billion, the report said.

JD’s NASDAQ-listed shares are down more than 16% from their February high and closed on Friday at $90.62.

Source: investing.com

[winston]

vested

Is JD Stock A Buy Right Now? Here's What JD.com Earnings, Charts Show

by BRIAN DEAGON

JD.com reported third-quarter results on Nov. 16 that beat on the bottom line and met on sales.

It reported adjusted earnings of 50 cents a share, up 72% and above Wall Street expectations of 41 cents.

Revenue climbed 29% to $25.66 billion, matching estimates.

In addition, annual active customer accounts grew 32% for the 12-month period to 441.6 million.

On a technical basis, JD.com stock is currently not a buy, as it tripped the round-trip sell rule after erasing a 17% gain from a 92.87 entry in early January. It was finding support at its 10-week moving average, a bullish sign, but fell below that line March 4.

Source: IBD

https://www.investors.com/news/technolo ... src=A00220

[winston]

not vested

Chinese e-commerce firm JD.com quarterly revenue rises 31 per cent on online retail strength

JD.com’s fourth-quarter revenue reached US$34.4 billion, beating analysts’ estimates

The e-commerce company’s annual active customer accounts totalled 471.9 million last year, up from 362 million in 2019

Source: Reuters

https://www.scmp.com/tech/big-tech/arti ... ent-online

[winston]

not vested

JD trebles earnings to 49b yuan

by Victor Zhong

Mainland e-commerce giant JD.com (9618) yesterday said its annual net profit tripled to 49.4 billion yuan (HK$59.08 billion) year-on-year in 2020.

This came as non-GAAP net profit rose by 57 percent to 16.83 billion yuan year-on-year. Non-GAAP net income per share also rose 50.94 percent to 5.57 yuan.

For 2020, total revenue climbed by nearly 27 percent to HK$745.80 billion yuan year-on-year.

Its annual active customer accounts rose by 30.3 percent to 471.9 million in 2020 over the previous year.

Gross merchandise volume increased by 26.92 percent to 2.61 trillion yuan year-on-year.

In the last quarter, the titan's net revenue rose to 224.33 billion yuan, beating analysts' estimates of 219.73 billion yuan.

Quarterly non-GAAP earnings went up by 194 percent year-on-year to nearly 2.39 billion yuan.

While China has largely emerged from coronavirus lockdowns with most businesses resuming production, JD.com's domestic consumers continue to shop online for everything from daily groceries to luxury products.

The company has also been working to expand into price-sensitive lower tier cities through its shopping platform Jingxi in a bid to stave off competition from rivals like Alibaba and Pinduoduo.

JD.com said product revenue, which includes online retail sales, rose about 28 percent to 192.2 billion yuan during the quarter.

Source: The Standard

https://www.thestandard.com.hk/section- ... o-49b-yuan

[winston]

not vested

How to Trade JD.com After a Mixed Earnings Reaction

JD.com reported a top- and bottom-line beat. So why is the stock flat and giving up its gains? Let's look at the chart.

by BRET KENWELL

Shares of JD.com (JD) looked like they were ready to make another run to the upside on Thursday.

The stock has been on fire over the past couple of months and enjoyed a strong finish to 2020.

The stock opened higher by about 5.5% after the company beat on earnings and revenue expectations.

Fourth-quarter revenue jumped about 40% year over year as well, as strong growth helped initially propel the stock higher.

However, sellers have stepped in at the open, despite it also being a strong day in the stock market, particularly in tech.

Perhaps it was the news surrounding Alibaba (BABA) that spooked investors, with the company continuing to butt heads with regulators in China.

In any event, it leaves the stock stuck between two key levels. Let’s look at the chart for more clarity.

Notice the strong trend that JD stock has been riding for several months now. More specifically, shares have been riding the 50-day and 100-day moving averages higher, most recently bouncing off the latter in December.

Now though, both of those measures are in question.

JD opened above the 50-day moving average on Thursday, but quickly lost this level as shares moved lower. For now, the 100-day moving average is acting as support, after briefly failing earlier this week.

So what now?

If the 100-day moving average fails as support, that does not bode well for bulls in the short term.

In that event, it will put this week’s low in play at $85.22. A break of that puts $80 support and the 200-day moving average on the table, which would likely offer investors a reasonable dip-buying opportunity.

On the upside, bulls want to see JD stock reclaim the 50-day moving average. More than that though, they want to see shares push through Thursday’s post-earnings high and the 21-day moving average, the latter of which rejected the stock shortly after the open.

If it can do that, bulls will likely have the $100 mark in mind, followed by a gap-fill up toward $105 to $105.50.

For now, the reaction is mixed and so are the technicals. Let's see if we get more clarity by the end of the week.

Source: The Street

https://www.thestreet.com/investing/jd- ... s+Reaction

[winston]

not vested

JD.com (JD US)
4Q20: Solid Beat, Growth Momentum To Continue Into 2021

JD.com reported a solid set of results for 4Q20.

Revenue increased by 31% yoy to Rmb224.3b, in line with our and street expectations.

Non-GAAP net profit came in at Rmb2.4b, up 194% yoy, beating consensus estimate of Rmb1.9b.

4Q20 non-GAAP net margin expanded by 0.6ppt to 1.1%, beating street estimates by 0.2ppt.

We maintain our
BUY rating and raise our target price to US$110.00 (HK$426.80) from US$105.00.

[winston]

not vested

Brokers' Latest TPs, Views on JD-SW (09618.HK) (Table)
Brokers│Ratings on JD.US│TPs (US$)

Citigroup│Buy│117
UBS│Buy│105->110
JPMorgan│Overweight│110
Jefferies│Buy│110
Nomura│Buy│109
Morgan Stanley│Overweight│92

————————————————

Brokers│Views

Citigroup│Eyes community group buying strategy development, FY21 GPM trend
UBS│JD rationally ramps up investment
JPMorgan│4Q20 results solid; eyes FY21 guidance
Jefferies│Strong execution captures opportunities
Nomura│4Q20 revenue beats; OPM misses
Morgan Stanley│4Q20 results mixed with latent FY21 OPM downside risks

Source: AAStocks Financial News

[winston]

vested

JD.com Slides After E-Commerce Giant Signals Spending Spree

by Coco Liu

(Bloomberg) -- JD.com Inc. slid Friday after the Chinese online retail giant flagged to investors it may sustain spending on logistics and new initiatives to continue riding the country’s online commerce boom.

The company reported a higher-than-expected 31% jump in December quarter revenue. The strong results means JD has a “strong foundation for investments in a range of growth opportunity,” Chief Financial Officer Sandy Ran Xu told analysts on Thursday. She declined to forecast margins in short term.

Investors have been concerned that JD’s margins will come under pressure as the Chinese company spends to maintain and expand its delivery network.

Net margin in the first quarter will drop 1 percentage point, Bocom analysts Brandy Sun and Connie Gu said in a research note, in part because of investments in infrastructure.

JD’s inhouse logistics network has been instrumental to buoying the company’s operations during the pandemic, when lockdowns drove a record number of consumers online. That fueled a surge in e-commerce for players from Alibaba Group Holding Ltd. to Pinduoduo Inc. in 2020, straining delivery networks, and questions remain about whether they can sustain growth this year.

The retailer reported sales of 224.3 billion yuan ($35 billion) in the December quarter, outpacing the 219.52 billion yuan average of analysts’ estimates. Net income was 24.3 billion yuan.

JD’s market value has more than doubled since the start of 2020 despite a broader tech selloff that began last month. The shares fell as much as 5.8% in Hong Kong trading.

On Thursday, the company announced its infrastructure management affiliate was raising $700 million in a preferred share issuance co-led by Hillhouse Capital and Warburg Pincus.

Chinese e-commerce revenue should surpass 50% of the country’s total retail sales this year -- a first anywhere in the world, according to researcher EMarketer. JD is now preparing to spin off its logistics unit in an initial public offering that could raise roughly $5 billion, the second debut of a subsidiary since JD Health Inc.’s 2020 coming-out party.

What Bloomberg Intelligence Says

JD.com’s profitability could keep improving as it benefits from economies of scale and operating efficiencies. The company’s increasing penetration of users from lower-tier cities may help to fund continued market-share gains vs. offline retailers, even amid intense e-commerce competition.

The company operates its own fulfillment network and logistics infrastructure, and owns the inventory for a sizable portion of its sales. These strategies attract merchants and consumers who demand high-quality goods.

JD Logistics’s imminent IPO would be a milestone for its parent, which spent billions of dollars building one of China’s largest courier services and hundreds of warehouses nationwide to ensure on-time delivery and retain control over its shipping network.

Its debut however will be overshadowed by the likely withdrawal of another financial services affiliate from capital markets. JD Digits Technology Holding Co.’s filed for an initial public offering on Shanghai’s Star market but is expected to let that lapse because of tougher rules on micro-lending.

Source: Bloomberg

https://finance.yahoo.com/news/jd-com-s ... 50118.html