JD.com (JD); 9618 HK

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4Q23: Earnings Beat; US$3b Buyback Plan; Vague Visibility On 2024 Outlook And 3P Monetisation

JD’s 4Q23 revenue edged up 3.6% yoy to Rmb306b, slightly better than our and consensus estimates.

Gross margin improved 15bp yoy to 14.2% in 4Q23.

Non-GAAP operating profit rose 7% yoy to Rmb7.8b, translating to non-GAAP operating margin of
2.5%.

Non-GAAP net profit came in at Rmb8.4b, 16% above consensus estimate, as a result of streamlining of operations.

Adjusted net margin was 2.7%, better than the street’s expectation.

Maintain BUY with a lower target price of HK$116.00 (US$31.00).

Source: UOBKH

https://research.uobkayhian.com/content ... 739e8311fd

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JD Targets Continued Annual Dividend Distribution in Future; Confident for Social Sales of Consumer Goods to Outperform Mkt

JD-SW (09618.HK) declared a final dividend of US$0.38 per share.

Speaking on an earnings call, CFO Su Shan said the dividend hike is to reflect the rapid growth in profits last year, and the group aims to continue its annual dividend in the future.

CEO Ran Xu added that as the Chinese government launches policies to promote consumption, the momentum of consumer recovery is expected to further improve.

Meanwhile, the mainland government's latest policy of encouraging trade-in of consumer goods is also expected to stimulate demand for electronic goods.

Source: AAStocks Financial News

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

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Broker│ Opinion

Jefferies│ Stable execution, dividend and share buyback reflect confidence in outlook

Citi│ Quarterly revenue and net profit beat expectations

BOCI│4Q23 revenue and profit beat expectations, and the improvement in daily necessities business was successful

Nomura│ Quarterly results beat expectations, and 2024 guidance mixed

UBS│ Earnings beat expectations, driven by profitability, and the Company reaffirms commitment to shareholders return

Morgan Stanley│ Watch needed for evidence of JD-SW's return to growth

Daiwa│ Focuses on strengthening users' engagement

Macquarie│ 4Q23 results satisfy, and capital returns continued to improve

JPMorgan│ Quarterly revenue and profit beat expectations, and positive market reaction expected

Source: AAStocks Financial News

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

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Earnings Alert: 4Q23 JD retail revenue grew 3.4%; expect growth pace to pick up post-strategic adjustment

4Q23 JD retail revenue increased 3.4% y-o-y, slightly better than market expectations of c.1% growth

Non-GAAP net profit (before minority interest) fell by 12% y-o-y, largely in line

Cut FY24/25F non-GAAP earnings by 6-9%, to reflect increasing investment in 3P ecosystem

Maintain BUY for its steady growth with undemanding valuation; TPs at HK$145/US$37

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=18538

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Why JD.com Stock Rallied Over 21% in March

by Billy Duberstein

Reported fourth-quarter earnings that handily beat analyst estimates.

JD's stock is trading at a very low single-digit price-to-earnings (PE) ratio.

JD noted it would reauthorize its $3 billion share repurchase program, which will last through 2027.

Declared an annual dividend of $0.76, a 23% increase over the $0.62 annual dividend last year.

JD is no longer a growth stock, but a value

Source: The Motley Fool

https://finance.yahoo.com/news/why-jd-c ... 00876.html

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1Q24F results likely in line with our expectation

JD hosted a 1Q24 results preview call on 16 Apr 2024.

We expect JD to post total revenue of Rmb272bn (+12.0% yoy) and largely flattish non-GAAP net profit of Rmb7,413m for 1Q24F, in line with our expectation.

We forecast non-GAAP NPM of 2.7% for 1Q24F (-0.4% pt yoy) due to sponsorship to CCTV’s Spring Festival Gala, and rise in salary and subsidies.

We expect JD’s “everyday low price” strategy and continual improvement in its 3P ecosystem to continue lifting its topline growth and market share in FY24F.

We maintain our FY24-26F EPS forecasts and reiterate our Add call, with an unchanged DCF-based TP of HK$276 (WACC: 13.4%, TG: 3%, Beta: 1.2).

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 1F008365AE

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<Research>CMS Forecasts JD.com, Inc. (JD.US) 1Q24 Rev. Growth to Continue to Outperform Mkt

CMS released a research report estimating that JD.com, Inc. (JD.US) 1Q24 revenue will reach RMB257 billion, up 5.8% YoY, while JD Retail's revenue will grow 4.8% YoY.

JD.com, Inc. said that merchandise turnover recorded good high single-digit YoY growth from January to February, faster than the 5.5% YoY growth in retail sales.

Meanwhile, January was the strongest month in 1Q24, with February and March being weaker.

Related News: CICC Forecasts JD.com (JD.US) 1Q Rev. Up 6.3% YoY, Non-GAAP NP Down 1% to RMB7.5B

JD.com, Inc.'s valuation is still at a low level, with the current valuation equivalent to a forward PE ratio of 7.8x/ 6.9x for FY2024/ FY2025, according to the report.

The Company's insistence on a low-priced strategy, RMB10 billion subsidies and content ecosystem construction began to achieve initial success in stabilizing its market share.

CMS slightly revised its earnings estimation for JD.com, Inc., and kept its target price unchanged at US$36, with rating at Overweight.

Source: AAStocks Financial News

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

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<Research>CICC Forecasts JD.com (JD.US) 1Q Rev. Up 6.3% YoY, Non-GAAP NP Down 1% to RMB7.5B

CICC released a report, estimating that JD.com (JD.US) 's 1Q24 revenue would rise 6.3% YoY to RMB258.2 billion.

Non-GAAP net profit is forecasted to drop 1% YoY to RMB7.5 billion, in line with consensus expectations.

CICC broadly maintained its profit forecasts on JD for 2024 and 2025. The broker kept its Outperform rating and US$32 target price.

Related News: HTSC Expects JD.com (JD.US) 1Q Rev. to Rise 6.4% YoY, Rates Buy

Source: AAStocks Financial News

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

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JD.com (9618 HK)

1Q24 Results Preview: Focusing On Three Core Strategies To Revitalise User Growth

JD’s top-line growth is expected to be 6% yoy for 1Q24, while GMV growth is projected
be exceed China’s 1Q24 retail growth of 4.7% yoy.

In 2024, JD will have a clean base after reorganisation and targets to achieve high single-digit normalised GMV growth.

Meanwhile, margin is expected to remain stable yoy due to ramped up investment in three major strategies including content ecosystem, open ecosystem and on-demand services.

Maintain BUY. Target price: HK$127.00 (US$34.00).

Source: UOBKH

https://research.uobkayhian.com/content ... be20b62960