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

[winston]

not vested

Low pricing pumps JD.com net up by 45pc

by Themis Qi

1H net profit surged nearly 45 percent year-on-year to 23 billion yuan (HK$25 billion),

During the April-June period, net profit grew 69 percent to 14.5 billion yuan

Net revenues inched up by 1.2 percent to 291.4 billion yuan for the second quarter.

First-half revenue increased 3.9 percent year-on-year to 551 billion yuan.

Source: The Standard

https://www.thestandard.com.hk/section- ... up-by-45pc

[winston]

vested

JD.com (9618 HK) 2Q24: Solid Earnings Beat; Targeting High Single-Digit Net Profit Margin

JD’s 2Q24 revenue rose 1% yoy to Rmb291.4b, in line with our and consensus estimates.

Gross profit margin improved 1.4ppt yoy to 15.8% in 2Q24.

Non-GAAP operating profit rose 20% yoy to Rmb11.6b, translating to non-GAAP operating profit margin of 4%.

Non-GAAP net profit came in at Rmb14.5b, beating our and consensus expectations, as a result of streamlining of operations.

Adjusted net margin expanded 2ppt yoy to 5%.

Maintain BUY with a lower target price of HK$120.00 (US$33.00).

Source: UOBKH

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

[winston]

vested

JD.com (9618 HK / JD US) - Proven business resilience with flexible cost structure

Summary (9618 HK): Despite a challenging macro environment, JD demonstrated its business resilience with flexible cost structure can deliver improvement in profitability.

JD posted a strong earnings beat with adjusted net income beat consensus estimates by 51% and surged 69% YoY.

The strong beat was driven by higher-than-expected margin from JD Logistics and decent margin from JD Retail.

Adjusted net margin was at record high of 5.0% and was also 1.7ppt higher than consensus forecast.

Management reiterated its target of gross merchandise value (GMV) and revenue growth to outpace overall retail sales in China in 2024.

We expect share price to react positively to solid earnings beat with better margins. JD is well positioned to benefit from the consumer goods subsidy program and it is in discussions with some local governments and various brands on implementation of the government consumer goods trade-in subsidy policy.

JD repurchased 68.4m ADS for USD2.1b in 2Q24 under its USD3b share buyback program.

The stock is trading at 7.7x forward price-to-earnings (P/E) vs about 9% earnings CAGR in the next few years, and is one of the least expansive stocks among internet and platform plays.

We fine tune our fair value estimate to HKD157 based on sum-of-the-parts (SOTP) methodology

Source: OCBC

[winston]

vested

Walmart Places Shrs of JD.com (JD.US) to Cash in US$3.74B Max. Reportedly; JD.com Slips after Trade

US retail behemoth Walmart (WMT.US) placed 144.5 million ADSs of JD.com (JD.US) at US$24.85-25.85 per share, cashing in up to US$3.74 billion (approximately HK$29.135 billion), Bloomberg cited sources.

JD.com slid 4.6% to close at US$28.19 overnight (20th). The share placement price was a discount of 8.3%-11.8% to the closing price.

The stock once dived 11% to US$25.08 in after-hours trading in the US stock market, and last dived 9.6% to US$25.49.

Related News: G Sachs Lifts TPs for JD-SW (09618.HK)/ JD LOGISTICS (02618.HK) to $157/ $13.7

Walmart is the largest shareholder of JD.com. In 2016, Walmart sold its grocery business, and Yihaodian, an e-commerce site targeting high-end women, to JD.com, thereby acquiring a 5% stake in JD.com.

Walmart later added its position, holding a total of 10.8% of JD.com.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

vested

JD.com's board greenlights US$5b buyback

JD.com said yesterday its board has approved a new US$5 (HK$39) billion share repurchase program, effective September, allowing the Chinese e-commerce giant to buy back its stock over the next 36 months.

US-listed shares of the company jumped 5.1 percent in pre-market trading.

JD.com is facing stiff competition in China's e-commerce sector, with all major firms ramping up promotions and discounts to woo cash-strapped consumers amid muted recovery in the world's second-largest economy.

Earlier this month, big-box retailer Walmart sold its entire roughly US$3.7 billion stake in JD.com, ending an eight-year investment in the company as it was yielding waning returns.

Source: Reuters

https://www.thestandard.com.hk/section- ... 5b-buyback

[winston]

not vested

JD.com (9618 HK / JD US) - Key beneficiary to consumption boosting measures

Summary (9618 HK): Policymakers and regulators announced a series of easing policies to support the economy last week together with a set of market stimulus measures.

Key policy highlights in stabilising home prices, lessening mortgage interest burdens and revitalising the stock markets are likely to support the wealth effect.

In light of the policy pivot, coupled with the consumer goods trade-in subsidy program that was announced previously, we believe it should have a positive impact on the sale of home appliances, artificial intelligence (AI)-enhanced smartphones and products consumption.

Despite a challenging macro environment, JD demonstrated its business resilience with a flexible cost structure can deliver improvement in profitability.

We believe there is upside risk to earnings estimates if stimulus measures follow through and successfully boost consumer sentiment and consumption.

JD should be well positioned to benefit from the policy pivot, the potential uplift from the consumer goods trade-in program as well as margin expansion.

Despite the recent share price rally, the stock is trading at 11x forward price-to-earnings (P/E) vs about 11% earnings CAGR in the next few years.

We believe there is still room for valuation re-rating given JD is the largest 1P retailer in China with a dominant position in electronics, appliance and fast-moving consumer goods, and supported by its industry-leading in-house warehousing and supply chain capabilities.

We lift our fair value estimate to HKD210 based on sum-of-the-parts (SOTP) methodology, implying a 12x forward P/E multiple

Source: OCBC

[winston]

JD.com (9618 HK)

3Q24 Results Preview: Promising Outlook;

Benefitting From Trade-In Programme JD’s top-line growth is guided to be solid at 4.8% yoy for 3Q24, on par with JD Retail’s growth and in line with our expectation.

JD also saw resilient user growth and GMV growth in 3Q24 as it is well positioned to benefit from a gradual consumption recovery in 2H24 on the back of the government stimulus and trade-in programme.

We also expect the 11.11 campaign that kicked off on 14 Oct 24 to boost consumption demand.

Maintain BUY with a higher target price of HK$197.00 (US$49.00).

Source: UOBKH

https://39646150.fs1.hubspotusercontent ... (9618%20HK)%20241016.pdf?utm_medium=email&_hsenc=p2ANqtz-_jgZ-fnUZml_X2LZ6vc_DC8Q8zyFyl0a7GBAT_fYb9fyLYkQ3jOsl9WXQR8fAzQWc_5CZa9nqlK0ilHcaQhQhXB_bxTA&_hsmi=329309790&utm_content=329309790&utm_source=hs_email

[winston]

vested

Home, electronics propel JD's net by 47pc

by June Chen

JD.com (9618) saw its net profit in the third quarter increase by more than 47 percent to 11.7 billion yuan (HK$12.57 billion) year-on-year,

Recorded more than 260 billion yuan in revenue in the period, an increase of 5.1 percent from the third quarter of 2023.

Suggest an initial recovery in segments of the Chinese consumer economy such as electronics.

Single's Day: The number of shoppers increased by more than 20 percent and live-streaming orders rose 3.8 times compared with last year's event.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... et-by-47pc

[winston]

vested

China’s JD.com struggles to shake off consumption weakness, misses revenue estimates

This period coincides with a traditional lull in Chinese consumption between major shopping festivals in June and November.

China’s Singles’ Day sales period, a nationwide sales promotion event typically seen as a gauge of consumer sentiment, ran from Oct 14 to Nov 11 this year, 10 days longer than last year. That resulted in a 26.6 per cent rise in sales across all major e-commerce platforms.

This year’s sales saw larger ticket household appliances perform better than last year, benefiting from a national 150 billion yuan trade-in subsidy scheme announced in July to help boost consumption.

Source: Reuters

https://www.businesstimes.com.sg/compan ... -estimates

[winston]

vested

Broker │ View

UBS │ Quarterly results benefited from significantly better-than-expected margin, with positive business outlook

Macquarie │ Strong quarterly results

Jefferies │ 4Q income growth expected to accelerate amid improved sentiment

HSBC Global Research │ Growth boosted by trade-in program

Nomura │ Quarterly earnings strengthened, and 4Q guidance in line

Daiwa │ Revenue grew on trade-in policy

JPMorgan │ Sturdy quarterly results expected to spark positive share price response

BofA Securities │ 4Q revenue to accelerate throughout the quarter due to subsidies

Citi │ Quarterly net profit strongly beat

Goldman Sachs │ Quarterly earnings beat

Morgan Stanley │ Company benefited from trade-in program

Source: AAStocks Financial News

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