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

[winston]

vested

JD.com (9618 HK)
3Q22 Results Preview: Top-line Growth To Moderate; Focusing On Margins And
Cash Flow

Management maintained its 3Q22 revenue growth guidance (about 11% yoy) due to
lockdowns implemented in multiple regions in China.

Amid the restrained merchant ad spending budget and disruption in logistics, we forecast JD’s 3Q22 revenue growth at 11% with net margin high at 2.8%, driven by improved marketing and operating efficiency brought about by the streamlining of its non-profitable business.

Maintain BUY with a lower target price of HK272.00 (US$72.00).

Source: UOBKH

https://research.uobkayhian.com/content ... b30e0093de

[winston]

not vested

JD(9618)

Analysis：

JD.com is a leading supply chain-based technology and service company in China.

For the first six months ended 2022, the group's revenue amounted to RMB 507.3 billion, representing an increase of 11.0%.

Net product revenues increase of 9% and net service revenues increase of 23.9%.

Cost of revenues amounted to RMB 437.9 billion, representing an increase of 10.5%.

Operating income amounted to RMB 6.17 billion, representing an increase of 214.43%.

Net profit for the period amounted to RMB 510 million, representing a decrease of 87.62%.

The drop in net profit for the period was mainly due to the sharp drop in other income or expense.

JD.com performed brilliantly on the 11/11 Online Shopping Festival, with a significant increase in the YoY turnover of many products.

In addition, the relaxation of China Covid-19 prevention policies will benefit the company's sales and cost control. We expect the company's share price will rise further.

Strategy：
Buy-in Price: $192.5, Target Price: $214, Cut Loss Price: $180

Source: Phillips

[winston]

not vested

JD Beats

by Brendan Ahern

JD.com beat on top-line revenue, which increased +11.4% year-over-year to RMB 243.54 billion versus an estimated RMB 243.07 billion.

The company’s net margin also increased to 2.4% versus 1.1% in Q3 2021, a record-high margin.

Source: Forbes

https://www.forbes.com/sites/brendanahe ... b3030a5050

[winston]

not vested

JD.com (9618 HK)
3Q22: Solid Earnings Beat; 4Q22 Revenue Growth Under Pressure

JD.com’s 3Q22 results were a strong beat with revenue growing 11% yoy to Rmb243.5b, in line with our and the street’s estimates.

Non-GAAP OPM came in at 4.1%, better than our estimate, supported by solid JD Retail EBIT margin of 5.2% (+1.2ppt yoy).

Non-GAAP net profit came in at Rmb10b, beating the street’s estimate, as a result of
improving operating efficiency.

We maintain BUY on JD.com with a higher target price of HK$297.00 (US$71.00).

Source: UOBKH

https://research.uobkayhian.com/content ... f2173c2494

[winston]

not vested

Brokers│Views

Jefferies│Strong execution resisted macro headwinds

DBS│E-commerce market share increased

Macquarie│3Q adjusted operating margin was well above market expectations

Citigroup│Revenue aligned with expectations; earnings beat evidently

Goldman Sachs│EBIT ratio showed unique business model and long-term profit potential

CCBI│Expected profitability continued to expand

CMS│Revenue grew steadily; profit largely exceeded expectations

CMBI│Profit margin expansion beat

Nomura│Cautious about 4Q, optimistic about the restart of the mainland economy in 2023

Daiwa│Company hailed a stronger recovery

CICC│4Q income may be under further pressure

China Securities│Profit greatly topped expectations

Guotai Junan│Profitability was unleashed; performance beat notably

Haitong International│Persistence on high-quality growth helped overcome the dark period before dawn

JPMorgan│Improved significantly profit margin was a positive surprise, but the slowdown in gross transaction value was doubtful

Morgan Stanley│Revenue met expectations; gross margin beat

Source: AAStocks Financial News

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

[winston]

not vested

JD.com (9618 HK) / (JD US) - Margin story playing out; look forward to better growth in FY23

JD.com (JD) reported a strong 3Q22 beat, with adjusted net income beating estimates by 28%.

This was due to net margin improving 180 basis points (bps) year-on-year (YoY) and 170bps quarter-on-quarter (QoQ).

Revenue was in-line with estimates (-1%), growing 11.4% YoY driven by services revenue.

Annual active customer accounts grew 6.5% YoY and 1.3% QoQ to 588.3m in 3Q22, reaccelerating from the flat growth rate in 2Q22.

Near-term, we are likely to see weaker than expected overall sales in China as management highlighted on-going difficulties due to Covid-19 measures.

That said, management was cautiously optimistic going into 2023 as they view the recently introduced 20 rules guiding Covid-19 measures to be very positive and constructive for recovery of domestic supply chain and consumer confidence, although they could not be sure of the speed of recovery.

Despite having little control over the timing of sustainable sales recovery, JD management stressed that they continue to focus on their long-term strategy of growing their margins to reach industry averages, as margins in almost all their business segments are still significantly below industry averages today.

Despite near-term sales headwinds, we remain positive on JD in the long term as its growth rates should continue to remain above peers on multiple drivers – industry sales recovery, market share gains, cost optimisation efforts, growing sources of revenue and earnings from increased advertising dollars and logistics services from third party merchants.

Following adjustments, we maintain our fair value (FV) at USD 76 (JD US) / HKD 298.00 (9618 HK). BUY.

Source: OCBC

[winston]

not vested

JD.com, Inc. (JD)

JD sits second in the market, trailing only Alibaba. The big difference is that unlike Alibaba, JD derives the bulk of its revenue via first-party sales rather than those of third parties. Additionally, its interests are mainly confined to the e-commerce segment.

Focused on top-quality products sold at enticing prices and delivered swiftly to customers, it’s a strategy that has served the company well;

Revenues exhibited a 30% compound annual growth rate (CAGR) between 2016 and 2021, climbing to RMB952 billion ($149 billion), while adj. net profit increased at an even faster rate (52%), rising to RMB17.2 billion ($2.7 billion).

In the most recent quarterly report, for Q3, the company generated revenue of RMB243.5 billion ($34.2 billion), amounting to an 11% year-over-year uptick, while falling shy of the consensus estimate by $270 million.

Nevertheless, due to margin expansion, adj. operating profit expanded by 33% to RMB4.7 billion ($700 million) and helped the company post adj. EPADS of $0.88, some distance above the $0.53 anticipated by the analysts.

Benchmark's Jiang rates JD shares a Buy along with a $100 price target. There’s upside potential of ~79% from current levels.

Source: TipRanks

https://finance.yahoo.com/news/time-pul ... 21827.html

[winston]

not vested

JD.com’s Richard Liu reasserts control at e-commerce empire, berating executives for poor performance as growth slows

Analysts say reports of Liu’s intervention shows he is still in firm control of e-commerce giant despite stepping back from frontline roles

by Ben Jiang

Source: SCMP

https://www.scmp.com/tech/big-tech/arti ... e=homepage

[winston]

not vested

JD.com (9618 HK)
Soft 4Q22 Revenue Growth; Cautious On 1H23, With Recovery In 2H23

The company saw weak consumer spending in 4Q22 due to disruptions from
lockdowns in multiple regions in Oct-Nov 22, and a pandemic outbreak in top-tier cities after the 6 Dec 22 reopening.

Amid the restrained merchant ad spending budget and disruption in logistics, we estimate JD’s 4Q22 revenue growth at 7% yoy.

We forecast net margin to expand 60bp yoy to 1.9%, driven by improved marketing and operating efficiency.

Maintain BUY with a higher target price of HK331.00 (US$87.00).

Maintain BUY on JD with a target price of HK$331.00 (US$87.00), based on our SOTP
valuation to 2023. Our target price implies 1x of 2023F EV/sales, 23x 2023F PE, 1x PEG.

We like JD for its room for margin improvement on better operating efficiency in its own ecosystem as well as margin expansion which should be supported by the 3P segment’s growth.

The company is trading at 0.42x EV/sales, 1.5SD below its historical mean.

Source: UOBKH

https://research.uobkayhian.com/content ... 5d9a0d69d1

[winston]

not vested

JD.com Inc
4Q22F operational update in line

JD hosted a conference call to provide an update on its 4Q22F operational data.

JD maintains its previous guidance for 4Q22F: high-single-digit top-line growth and an
increase of 50–60bps in non-GAAP NPM to 1.8–1.9%, in line with our expectations.

For FY23F, management remains conservative on the 1Q23F outlook given the
uncertainties related to the Covid situation, but expects a solid recovery from 2Q23F.

We expect revenue and non-GAAP net profit to grow by 7.7% and 57% yoy in 4Q22F.

Reiterate Add with an unchanged DCF-based TP of HK$348.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 8423FDB02C