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

[winston]

not vested

Macquarie Slightly Cuts JD-SW (09618.HK) TP to $365, Rating Outperform

JD-SW (09618.HK)'s 2Q22 earnings were projected to be in line with the market consensus, with a 3% YoY growth in the total revenue, driven by the group's cost-optimization efforts and scale-back of new loss-making initiatives, reported Macquarie.

The continued recovery of the logistics sector during April-June would support the revenue and earnings outlook of JD-SW, as well as the broker's expectation for market-share gains for the company in both offline and online markets.

Macquarie, however, slashed the 2022-23E adjusted net profit for the group by 2% and 1%, respectively, to reflect the Covid-related uncertainties.

The target price for the stock was correspondingly cut by 1% to $365, with its rating kept at Outperform.

Source: AAStocks Financial News

[winston]

not vested

CITIC Securities Sees JD-SW (09618.HK) 2Q Non-GAAP NP at RMB4.83B, Rating Kept Buy

JD-SW (09618.HK) has a higher profit visibility despite China's murky recovery.

CITIC Securities expected the group to maintain a stable earnings uptrend YoY for 2H22. The stock was kept at Buy, with a target price of $275.

The broker assumed the firm's 2Q22 turnover growth at 2.9% YoY, and non-GAAP net profit of RMB4.83 billion (corresponding to a 1.85% net margin).

Over the medium to long term, JD-SW is set to further cement users helped by supply chain and logistics edges, and keep boosting market share given commercial value and social progress.

Related News - G Sachs Trims JD-SW (09618.HK) TP to $345, Ousted from CL Buy

Source: AAStocks Financial News

[winston]

not vested

BofAS Expects JD-SW (09618.HK) 2Q Non-GAAP NP at RMB4.7B, Rating Buy

BofA Securities maintained the forecast that the revenue of JD-SW (09618.HK) would rise by 3% YoY to RMB262 billion in 2Q22, citing data from the National Bureau of Statistics (NBS) which illustrated that the online retail sales of physical products expanded by 3% YoY over 2Q22.

Similarly to most internet companies, JD-SW has started to implement cost control measures recently to cope with the impact from a slowdown in industry growth, commented BofA Securities. The broker anticipated room for optimizing subsidy level and hence improvement in GPM.

The net profit of JD-SW in 2Q22 was forecast to reach RMB2.45 billion, with a non-GAAP adjusted net profit of RMB4.7 billion.

Net loss of JD LOGISTICS (02618.HK) was likewise predicted to narrow to approximately RMB173 million.

Related News: CITIC Securities Sees JD-SW (09618.HK) 2Q Non-GAAP NP at RMB4.83B, Rating Kept Buy

BofA Securities maintained the 2022-24 result forecasts for JD-SW.

The stock was kept at Buy, with a target price of $298.

Source: AAStocks Financial News

[winston]

vested

JD.com outperforms industry in first half

JD.com (9618) saw its adjusted interim net profit jump by 22.42 percent year-on-year to 10.52 billion yuan (HK$12.06 billion).

The revenue of the e-commerce giant for the first half increased 11 percent year-on-year to 507.3 billion yuan, and the revenue in the second quarter was 267.6 billion yuan which was up 5.4 percent year-on-year and higher than the average growth rate of the industry.

JD Health (6618), a subsidiary of JD.com, announced that its adjusted net profit for the first half soared by 82 percent to 1.21 billion yuan. Revenue increased by 48.3 percent to 20.2 billion yuan for the first six months. There will be no interim dividend.

Another subsidiary, JD Logistics (2618), said its interim loss narrowed by 90 percent to 1.46 billion yuan for the first half.

Its adjusted net loss narrowed by 61 percent to 585 million yuan. There will also be no interim dividend.

Source: The Standard

https://www.thestandard.com.hk/section- ... first-half

[winston]

not vested

Brokers│Views

Jefferies│sustains core ability with clear long-term strategy

DBS│trade growth strong; sustainable growth backed by robust delivery ability

Goldman Sachs│consumption revival slow; integrates cost control to sharply expand profit margin

Citigroup│2Q rev. slightly beats; NP notably beats

CLSA│result notably beats

BOCOMI│lifts 2022-23 profit estimates by 16-17% on marketing expense cut

Morgan Stanley│2Q result solid, 3Q outlook resilient

UBS│recent biz growth faster, yet mkt spending confidence still weak

Daiwa│result beat driven by JD's retail profitability improvement, non-operating profit

JPMorgan│earnings notably beats

Nomura│2Q result beats, 2H operating profit guidance beats

Related News: JD-SW 1H Non-GAAP NP Up 22.4% to RMB10.52B Beats; JD.com (JD.US) Leaps Over 4% Pre-mkt

Source: AAStocks Financial News

[winston]

not vested

JD.com (JD US / 9618 HK) - Strong execution; potential increase in profitability

JD.com (JD) delivered a robust 2QFY22 scorecard.

Total revenue grew 5.4% YoY to CNY267.6b, which was ahead of consensus by 2%.

JD Retail’s adjusted OPM grew 80 basis points (bps) year-on-year (YoY) to 3.4%, which we believe is due in part to enhanced operating efficiency and greater focus on ROI of general marketing spending and other OPEX items.

Non-GAAP net profit came in at CNY6.5b, which was 47% higher than consensus. As we understand, management pointed to a relatively soft patch in July. Still, slight sequential recovery has been observed in Aug and the expectation is for this improvement to continue into Sep.

All considered, despite the challenging near-term headwinds, management expects that JD Retail’s fulfilled gross margin in most core categories to continue to improve in 3Q22 on a YoY and quarter-on-quarter (QoQ) basis, especially in the supermarket category.

As for new businesses, JD expects the investment scale will decline both YoY and QoQ as the team is more focused on cash flow and profitability.

While the 580.8m annual active customer accounts (+0.3m QoQ) looked a tad soft, we note that this is also in part due to the user loss resulting from the restructuring of the Jingxi business. Excluding the latter, the net addition of active users in the core JD Retail business would have been at 10m+ QoQ even in the face of Covid-19 disruptions.

In our view, we remain constructive on JD as it should still be able to clock healthy growth in FY22 on the back of increased cost control (flowing also into the bottom line), while there appears to be some confidence over near-term margins as well.

Following adjustments, our FV eases slightly from USD80 to USD76 (JD US) / HKD314 to HKD298 (9618 HK). BUY.

Source: OCBC

[winston]

not vested

Cost-saving measures start to bear fruit

JD reported that revenue grew by 5.4% yoy to Rmb267.6bn in 2Q22, in line.

Non-GAAP net profit grew by 38.3% yoy to Rmb6,836m in 2Q22, better than we
expected, due to higher margins.

JD achieved mid- to high-single digit revenue growth in Jun, and management saw
mom improvement in Jul and Aug. We expect 10% yoy revenue growth for 3Q22F.

JD streamlined its Jinxi business and implemented various cost-saving measures; we
expect the non-GAAP NPM to continue to improve by 60bp yoy in 3Q22F.

Reiterate Add, given JD’s large potential to further improve its margins. We raise our
DCF-based TP to HK$345, since we increased our FY22F–24F EPS forecasts.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 91163F360F

[winston]

vested

JD-SW Unveils 100 Cities, 10,000 Shops New Initiative; 'One-hr Purchase' Covers Over 87K Physical Stores

JD-SW (09618.HK) 's omni-channel supermarket, JD Super, announced a new business initiative aimed at facilitating the digitalization and enhancing the operating capability of 10,000 brands across 100 cities.

Also, the company revealed that, as of now, JD Super's "one-hour" purchase and delivery services cover more than 87,000 brick-and-mortar stores.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

[winston]

vested

Jefferies Expects JD-SW to Post RMB7.3B Non-GAAP NP in 3Q, Rating Buy

JD-SW (09618.HK) is anticipated to deliver better-than-expected revenue, non-GAAP earnings and NPM in the third quarter of 2022, powered by its effective cost-control efforts, reported Jefferies.

Specifically, the broker forecast that JD-SW's revenue and non-GAAP net profit would reach RMB243.2 billion and RMB7.3 billion in 3Q22, respectively, with the non-GAAP NPM rising by 70 bps to about 3%.

Jefferies contended that lower-tier cities penetration, third party eco-systems, omni-channels and cultivation of fast-growing categories, would pave way for JD-SW's long-term growth.

The stock was rated at Buy, with its target price kept unchanged at $448.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

[winston]

vested

3Q22F results expected to be in line

We had a conference call with JD to discuss its 3Q22F results outlook.

JD maintains both top- and bottom-line guidance for 3Q22F: i.e. c.10% yoy top-line
growth and NPM improvement by 0.6ppt yoy, in line with our expectations.

We expect the company to continue to improve its NPM in 4Q22F because of
effective cost-saving strategies and streamlining its loss-making investments.

JD will focus on improving user frequency and ARPU, rather than increasing MAU, per management.

Management remains conservative about 4Q22F top-line growth, given the weak
operating environment and Covid resurgence under strict pandemic control policy

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 662EDD4580