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

[winston]

1Q21: Strong Growth Momentum, Heavier New Business Investment Down The Road

JD.com reported a solid set of results for 1Q21.

Revenue grew by 39% yoy to Rmb203.2b, beating our and street expectations by 6.5% and 5.8% respectively.

Non-GAAP net profit came in at Rmb4b, up 33% yoy and above consensus estimate of Rmb3.7b on higher interest income.

1Q21 non-GAAP net margin was flattish yoy at 2%.

We maintain our BUY rating and lower our target price to US$100.00 (HK$388.00) from US$102.00.

Source: UOBKH

https://research.uobkayhian.com/content ... a080e9daa6

[winston]

not vested

Brokers' Post-Result Ratings, TPs, Views on JD-SW (09618.HK) (Table)

Brokers│Ratings│TPs (HK$)
Daiwa│Buy│425->465
Goldman Sachs│Buy (CL Buy)│460
Credit Suisse│Outperform│431
Jefferies│Buy│426
-----------------------------------------

Brokers│Ratings│TPs (US$)
Goldman Sachs│Buy (CL Buy)│119
Credit Suisse│Outperform│110
Jefferies│Buy│110
UBS│Buy│105
Nomura│Buy│98
HSBC Global Research│Buy│98->89
Morgan Stanley│Overweight│89
-----------------------------------------

Brokers│Views
Daiwa│User growth resilient
Goldman Sachs│1Q21 operating income, core profit margin beat
Credit Suisse│Grows less concerned about growth, profit margin outlook; upbeat on FY21 outlook
UBS│YAUs reach 500M, beat; FY21 operation growth may keep FY20's level
Nomura│1Q21 results beat
HSBC Global Research│2Q21 income may grow resiliently; profit margin may stay stable
Morgan Stanley│1Q21 results beat; eyes community group purchase rivalry
Jefferies│1Q21 income, non-GAAP revenue beat consensus

Source: AAStocks Financial News

[winston]

JD.com’s Q1 Results Exceed Analysts’ Expectations; Street Says Buy

by Priti Ramgarhia

JD’s Retail segment reported revenues of $28.4 billion (RMB185.8 billion) in the quarter, up 35.2% year-over-year.

Additionally, revenues at JD Logistics grew 63.5% to $3.4 billion (RMB22.4 billion).

Source: Tip Ranks

https://www.tipranks.com/news/jd-coms-q ... =story_thu

[winston]

not vested

Heavy investments to harm near-term margins

JD reported 1Q21 net revenue of Rmb203bn, up 39% yoy, and non-GAAP net profit of
Rmb3.97bn, up 33% yoy, both slightly above our expectations.

In the rest of FY21F, JD will invest heavily in Jingxi Pinpin by building up more shortchain supply chains for grocery products and 3P merchants and by offering subsidies to increase Pinpin’s brand recognition.

On April 1, JD’s AAU exceeded 500m with about 80% of new users in 1Q21 from
lower-tier markets.

Reiterate Add with a lower DCF-based TP of HK$379 to reflect margin risk, as JD will
step up its heavy operating investment in its Jingxi business group in FY21F.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 6D565D033E

[winston]

not vested

JD.com (JD US / 9618 HK) - Growing but disciplined

JD.com delivered a good set of 1Q21 results.

JD Retail non-GAAP OPM increased 0.3ppt YoY to 4.0%, while overall non-GAAP OPM was flat YoY at 2.0%, which we attribute to investments in logistics and the group’s Jingxi business.

Non-GAAP PATMI came in at RMB 4.0b, or ~7% ahead of consensus.

Given that management is guiding for 1H21 top-line growth to be similar to that of 1H20 (i.e. around 28%), and in the face of a strong 1Q21, this would suggest some deceleration in 2Q21, in part on the back of a strong base last year, especially in categories like home appliances.

However, we believe that such a guidance could be conservative, given the expectation of more brands across categories coming to JD’s platform and the group’s early preparatory work to secure certain merchandise amidst the global supply crunch in consumer electronics components.

This speaks to JD’s strong position and strength of its 1P business model as it heads into the 6.18 shopping festival.

We understand that management expects retail OPM to be largely stable in 2Q21 (vs 2Q20).

Over the longer-term, the expectation for JD Retail’s OPM is to maintain a steady growth trend, with the underlying drivers being scale and improvement of its 3P ecosystems.

On Jingxi PinPin (JXPP), management intends to take a prudent and dynamic approach in the area of Community Group Purchase by leveraging its existing supply chain and logistics infrastructure and being ROI-focused.

In our view, investors are likely to be encouraged by JD’s ability to show solid top-line growth while at the same time being disciplined in its investments. BUY.

Source: OCBC

[winston]

not vested

JD.com – BUY

JD guided that it will continue to strengthen its logistics capabilities as it believes
the success of its community group purchase relies heavily on logistics solutions (especially fresh produce which requires instant deliveries to ensure freshness).

In terms of strategy\for JD Retail, the company will pay attention to omni-channel solutions by integrating comprehensive digitalisation and marketing solutions to
enable merchants to position themselves in various consumption scenarios.

JD expects JD Retail’s growth momentum in 2021 to be similar to 2020’s (27% yoy
growth) with long-term margins to remain stable due to economies of scale and
improvement in 3P sales.

Management expects supermarket and healthcare categories to grow faster than the sales of electronics and home appliances.

JD Logistic debuted on the HK Stock Exchange. The company is trading at 3x PS (price
to sales, based on 2020 revenue) whereas SF Holdings’ 2020 PS is trading at 2x. The
slight premium is justifiable due to:-
a) its earnings visibility via contribution from its parent and
b) multi-growth engine model from JD (ie new initiatives and FMCG).

Our SOTP-based target price is US$100.00 (HK$388.00), implying 34x 2022F PE
against three-year recurring EPS CAGR of 38% from 2022-25.

Share Price Catalyst
a) Strong new user growth
b) continued margin expansion and
c) further expansion of logistics services to internal and external customers.

Timeline: 2H21

Source: UOBKH

[winston]

not vested

Valuation

We derive our TP of HK$487 based on unchanged SOTP methodology, with the following assumptions:-
(1) 28x FY22F core profit (HK$335);
(2) JD Logistics (HK$58);
(3) JD Digits (HK$24);
(4) market value for other investments (HK$15); and
(5) net cash in FY22F (HK$55). Maintain BUY.

Source: DBS

https://www.dbs.com.sg/treasures/aics/s ... 618_HK.xml

[winston]

JD.com Inc
New strategy updates

JD hosted an Investor Day last night to talk about its future strategy.

JD updated its Strategy 2.0, with three new strategic goals:
1) to empower the offline economy,
2) improve social well-being, and
3) promote a green economy.

JD’s core advantages lie in its over 8m SKUs, its nationwide logistics network, with
only 31.2 days inventory, 500m customers, and the capability to deliver about 90% of its orders within two days.

In 2021, JD expects to increase its customer base by over 100m, reaching 600m.

JD will continue to invest in Jingxi Pinpin, and it is confident that it can reach a higher
ROI than its peers’ because of its logistics and supply chain advantages.

Reiterate Add with an unchanged DCF-based TP of HK$379.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 3172F7A4CE

[winston]

not vested

JD.com (JD US)
Transforming Into A Supply Chain-based Technology Platform; Solid Growth Ahead

JD hosted its virtual Investor Day and provided an update for its business.

JD is transforming from an e-commerce company into a supply chain-based technology
and service platform, as it believes services will drive long-term sustainable growth
of the group into the next decade.

Our positive view on JD is reinforced due to its solid user growth and margin outlook and investments in new business segments.

Maintain BUY with an unchanged target price of US$100.00 (HK$388.00).

Source: UOBKH

https://research.uobkayhian.com/content ... 00f82aabd8

[winston]

not vested

JD.com (NASDAQ: JD)

Chinese e-commerce giant JD.com is benefiting from the diversification of its revenue base and growing contribution from its services revenues.

In Q1, the company delivered top-line growth of 39% year-over-year. Furthermore, its adjusted net income increased 33%. (See JD.com stock charts on TipRanks)

Stifel Nicolaus’s five-star analyst Scott Devitt reiterated a Buy rating on the stock with a price target of $95 (29.2% upside potential).

Devitt said that JD is in a growing market, and its expansion of its logistics business and opportunities in the healthcare segment bode well for future growth.

The Strong Buy consensus on JD.com shares is based on 14 Buys and 1 Hold. The average JD.com price target of $101.33 implies approximately 37.8% upside potential to current level.

Source: Tip Ranks