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

[winston]

not vested

JD.com (9618 HK)
4Q21: Robust Top-line Growth; Solid Guidance Despite Macro Challenges

JD.com reported solid 4Q21 results.

Revenue grew 23% yoy to Rmb275.9b, in line with our and Street estimates.

Non-GAAP net profit increased 49% yoy to Rmb3.6b, above Street estimates, coming after the adjustment for one-off items amounting to Rmb5.8b.

Management expects weak consumption demand this year due to COVID19 and a challenging macro environment, while JD Retail will continue to gain market
share.

Maintain BUY on JD.com with a lower target price of HK$339.00.

Source: UOBKH

https://research.uobkayhian.com/content ... cf3b0ed27c

[winston]

vested

Brokers│Views

Jefferies│Strong execution ability with clear strategy
Credit Suisse│Quarterly results slightly beat forecast; growth outlook solid
CLSA │Robust sales for electronic products
DBS│Annual active users growth lays foundation for earnings expansion
Macquarie│Profit margin improvement on track

Daiwa│4Q results in line; growth outlook strongest among peers
JPMorgan│Quarterly results positive on share price
HSBC Global Research│Growth, profit margin expansion story continues
Citigroup│Balanced achieved between sustainable healthy growth and profitability
Nomura│Quarterly results solid, beating forecast

UBS│Market concerns overshadow the company's promising growth outlook
Haitong International│Revenue in line but users number missed forecast
Morgan Stanley│Growth remained resilient amid weak market sentiment

Source: AAStocks Financial News

[winston]

vested

JD.com (JD US/9618 HK) - Solid growth prospects marred by weak sector sentiment

JD.com (JD) delivered a solid set of 4Q21 results.

Total revenue grew 23% YoY to RMB275.9b, which came in a touch above consensus.

Non-GAAP OPM was healthy at 1.0% while non-GAAP net profit was at RMB3.6b, or 39% above consensus.

On JD Retail, management expects high teens to 20% YoY growth in 1Q22 top-line growth, though with acceleration in 2H22.

JD Retail margins are also expected to be stable, though there could be some impact in 1Q22 arising from JD’s CNY gala sponsorship.

Management noted that it remains relatively conservative on overall consumption in 1Q and 1H22, given the various headwinds such as weaker consumption, Covid-19 resurgence and cost inflation – factors that the market would be familiar with by now.

Regarding Tencent’s distribution in specie of JD shares, we understand that management has had some conversations with Tencent shareholders who believe that the business is resilient viz-a-viz peers.

Management also pointed out that most of Tencent’s top 20 shareholders are already shareholders of JD. All considered, we believe that JD remains in a good position to drive share gains in key categories, as well as manage margins despite macro and Covid-10 related headwinds.

We understand that the market has been concerned about the potential impact from a potential ADR delisting scenario, but we believe JD is relatively better positioned than some of its other peers, given that it has already completed its HK secondary listing.

Notwithstanding, we incorporate more conservative assumptions given the near-term headwinds, and our FV drops from USD111 to USD82 for JD US, and from HKD432 to HKD319 for 9618 HK. BUY.

Source: OCBC

[winston]

vested

Providing stability in turbulent times

JD reported 4Q21 revenue of Rmb275.9bn, up 23.0% yoy, in line with our expectation,
and non-GAAP net income of Rmb3.6bn, up 49.4% yoy, better than we expected,
mainly because of more efficient expenses control.

In FY22F, JD will focus more on user retention, ARPU improvement, and increasing the
conversion rate of Plus members.

We expect JD to achieve revenue growth of 19% yoy in 1Q22F and 20% yoy in FY22F.
We expect 1Q22F non-GAAP OPM to be affected by sponsorship for CCTV’s CNY
Gala, but for full-year FY22F, we expect a yoy stable non-GAAP OPM of 1.5%.

The loss ratio of new business in FY22F should narrow, and management expects
overall investment in new business in FY22F to be lower than in FY21.

Reiterate Add with a new DCF-based TP of HK$330. JD is our top pick for the ecommerce sector.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... BA00436F6E

[winston]

not vested

JD On Layoff Rumor: Biz Sectors Under Normal Optimization

JD-SW (09618.HK) is downsizing its crew in numerous business lines, involving Jingxi, JD Worldwide, JD Retail, JD LOGISTICS (02618.HK) and JD Technology, with the dismissal scale of 10-30%, Chinese media reported.

This round of layoffs is just a normal optimization of the business sector, and the key businesses are still developing vibrantly, as the related person of JD responded.

Source: AAStocks Financial News

[winston]

not vested

JD.com (9618 HK)
Cautiously Optimistic; Still Expecting Better-Than-Peers Growth

We expect the recent COVID-19 lockdowns to drag JD’s bottoming-out recovery in
2Q22.

However, we still like JD due to its:
a) better-than-peers top-line growth
b) unique 1P business model and solid logistics network
c) lower susceptibility to regulatory risk and
d) continued healthy margin expansion anchored by 3P segment growth.

We forecast 17% revenue growth in 2022, and 1.5% net margin growth (-2%
yoy net profit growth).

Maintain BUY. Lower target price to HK320.00 (US$82.00).

Source: UOBKH

https://research.uobkayhian.com/content ... 95ac4e97d5

[winston]

not vested

1H22F to be impacted by the pandemic

We held a pre-blackout conference call with JD regarding its 1Q22F performance and
2Q22F outlook.

Given the current Omicron situation, we expect JD’s 1Q22F top-line growth to be 16%
yoy. We now expect the pandemic situation in Shanghai to be controlled in late Apr/early

May and JD’s sales growth to recover in 3Q21.

Reiterate Add with a new DCF-based TP of HK$318. JD is our top pick for the ecommerce sector.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 3D6FD67FE3

[winston]

not vested

Citi: JD-SW (09618.HK) Spec Div Declaration Suggests JD Confident of Biz Outlook, Cash Flow Generation Ability

Citigroup was positive about the announcement made by JD-SW (09618.HK) on declaring the special dividend of US$0.63 per share, as this indicated the company's confidence in the business outlook and cash flow generation ability, and hope to raise shareholders' return by more flexible means.

Under the US$3-billion buyback program of JD-SW, the company had so far bought back about US$1.13-billion shares.

In addition to the upcoming about US$2-billion dividend expenses, the company is set to return to shareholders around 40% of the non-GAAP profit it had generated over 2019-2021.

Given the around US$26.4-billion net cash balance as of end-2021 and solid fundamentals of JD-SW, Citigroup was confident that the company could navigate through macro headwinds, while maintaining the flexibility to support business investment and shareholders' return.

Citigroup reiterated the rating on the U.S. shares of JD at Buy with target price of US$97.

Source: AAStocks Financial News

[winston]

vested

JD.com loses 3b yuan in Q1

Chinese e-commerce group JD.com (9618) suffered a net loss of 3 billion yuan (HK$3.5 billion) in the first quarter this year but logged better-than-expected 18 percent revenue growth as more people shopped following lockdowns.

The net loss attributable to ordinary shareholders stood at 2.99 billion yuan, compared with a profit of 3.62 billion yuan a year earlier. The adjusted net profit for the first quarter was 4 billion yuan, the same as last year, but still beating analysts' expectations.

Annual active customer accounts increased by 16.2 percent to 580.5 million in the twelve months ended March 31 this year, the firm said.

This came as JD Logistics (2618) the tech giant's logistics unit, narrowed its net loss to 1.4 billion yuan in the first three months. That compared with a loss of 11 billion yuan in the same period of 2021.

The adjusted loss also narrowed by 41.6 percent to 797 million yuan in the first quarter while revenue for the same period rose 22 percent year-on-year to 27.3 billion yuan.

Source: AP

https://www.thestandard.com.hk/section- ... yuan-in-Q1

[winston]

vested

Chinese e-commerce giant JD.com posted its slowest quarterly revenue growth on record for the first three months of the year, as Covid-19 lockdowns in the world’s second-largest economy weighed on consumer spending.

JD.com beat estimates on revenue but missed expectations on profit.

In the three months to the end of December, rival Alibaba reported its slowest quarterly growth rate since its 2014 listing.

Chinese tech giants are facing a number of headwinds including Covid lockdowns in parts of China, with the financial and economic powerhouse city of Shanghai hit particularly hard. This has weighed on the economy with retail sales falling more than expected in March.

JD’s retail segment, its largest division by revenue, brought in revenue of 217.5 billion yuan in the March quarter, up 17% year-on-year.

The Chinese firm’s logistics business, which is the second-largest unit, saw revenue rise 22% year-on-year to 27.3 billion yuan. JD Logistics also narrowed its losses in the quarter.

Source: Phillips