by winston » Thu Jan 19, 2023 6:40 pm
not vested
JD.com, Inc. (JD)
The company boasts that it is both the largest retailer, and largest online retailer, in China, and it has a market cap of approximately $94 billion.
The company operates as B2C, and offers a wide range of products, from apparel to cosmetics to electronics to groceries.
The company’s network covers 99% of the Chinese population, and even offers same-day and next-day delivery. JD’s base includes more than 588 million customers, and the company is known as a leader in e-commerce logistics.
That leading position is visible in JD’s last quarterly report, from 3Q22, which showed a top line of $34.2 billion in revenues for an 11.4% year-over-year gain.
The company’s service revenues made up $6.5 billion of that total, and led the gains with a 42.2% y/y increase.
Operating cash flow in the quarter reached $6.4 billion, an 11% y/y increase.
JD’s strong revenues were supported by a solid increase in annual active customer accounts. For the 12 months that ended on September 30, 2022, the company’s customer base rose year-over-year by 6.5%, to hit 588.3 million.
Looking at the firm’s website traffic, we find that site visits are on a rising trend. The last reported data, for Q3, showed 24.3 million total visits, including 15.4 million on desktop devices and 8.9 via mobile units.
The overall visits were up more than 34% y/y, and have grown another 31% y/y and 9.5% sequentially in Q4 to reach a total of 26.67 million. Looking a bit farther ahead, the January data should be interesting, as will include traffic during the Chinese New Year holiday.
JD is slated to report its 4Q22 and FY2022 numbers in early March.
This stock has been reviewed by analyst Charlene Liu, of HSBC, who writes, “We expect margin improvement to continue in 2023e driven by further streamlining efforts and better operating efficiency as revenue picks up….
Following up from this stance, Liu gives JD shares a Buy rating, with an $82 price target to suggest a one-year upside potential of 40%.
Source: TipRanks
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