JD.com (JD), 9618 HK; 02 (Mar 23 - Dec 26)

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Brokers│Views

Goldman Sachs│1Q earnings beat

Citi│New management structure can drive decision-making and growth

Morgan Stanley│1Q profit margin growth beats, and the growth of e-commerce and home appliance businesses both beat

Nomura│1Q results beat; 2Q guidance is in line with expectations

HSBC Global Research│Sustained rise in gross profit can drive earnings and cash flow

Macquarie│Adjusted profit beats; restructuring is expected to boost gross profit

JP Morgan│1Q profit is resilient

Source: AAStocks Financial News

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

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JD.com Inc
Positive margin outlook

JD reported 1Q23 revenue of Rmb243bn, up 1.4% yoy, largely in line with our expectation, driven by strong 3P business growth.

Non-GAAP OPM was 3.3%, up 150bps, above our expectation, driven by the improved profitability of JD Retail (JDR) and reduced losses from new businesses.

JD maintains its previous guidance for FY23F, with more confidence in its margins. In 2Q23, we expect 2% top-line growth and a non-GAAP NPM of 2.9%, up 50bps yoy.

Reiterate Add with a higher DCF-based TP of HK$308.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... F01452E867

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JD.com (9618 HK) / (JD US) - Respectable earnings beat with improving sales momentum

We are positive on JD.com (JD) business franchise and long-term strategy of focusing on the customer experience by investing in its logistics network, balancing growth and profitability by directing resources to targeted segments, and enhancing its brand perception.

With its latest round of business restructuring, JD should be able to sustain consistent margin improvements and strong growth in earnings.

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

Source: OCBC

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JD.com gets a head start on shopping festival

Started presales for the 618 shopping festival last night, three days ahead of Alibaba's (9988) Tmall, and launched a ''double price difference compensation" .

The mid-year shopping festival will officially run from May 31 until June 20.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... g-festival

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M Stanley: JD Believes E-commerce Competition This Yr Softer vs. Mkt Expectations, Focuses More on Quality Growth

Morgan Stanley reported that the post-epidemic rebound in China's service sector has boosted income levels and pushed consumer demand to improve but China's overall income levels have not yet recovered and a full recovery in consumption is still hampered.

The report quoted JD-SW (09618.HK) management as saying that they believed competition in the e-commerce space this year not to be as intense as the market thinks, as most companies are focusing on quality growth and efficiency improvements.

The management is also confident in maintaining healthy margins, supported by higher margins from its direct sales business and higher GMV contributions from its third-party business.

Morgan Stanley expected JD to continue to gain market share in its core categories, and to benefit from a low base and depressed demand in the housing market in March, with home appliance GMV increasing by more than 20% YoY in April.

New smartphone models are expected to be launched in the second half of the year, which also boosts smartphone demand. JD maintained its high single-digit non-GAAP net profit margin target.

Morgan Stanley rated JD Overweight with a price target of USD60 for its US shares.

Source: AAStocks Financial News

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

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JD.com’s new strategy to woo cash-strapped Chinese shoppers: smaller retailers, cheaper products

JD.com, which used to limit the number of vendors on its marketplace, has opened its arms to smaller merchants selling lower-priced goods

The move could help boost JD.com’s offerings of cheaper products but the company also needs to protect its brand image, analysts say

by Ben Jiang

Source: SCMP

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

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JD(9618)

Analysis：

JD – SW (9618.HK) is a leading supply chain-based technology and service provider.

For the first quarter ended Mar 31, 2023, the group revenue amounted to RMB 243 billion, increasing 1.4% YoY.

Cost of revenue amounted to RMB 207 billion, increasing 0.4% YoY.

Income from operations amounted to RMB 6.4 billion, increasing 166.8% YoY.

Net income attributable to the company`s ordinary shareholders amounted to RMB 6.3 billion, turnaround YoY.

This year`s JD 618 shopping festival started per-sale on May 31 and continue until June 20.

The intensity of subsidizing consumers and partners, and the number of participating merchants has reached a record high.

The subsidy method has been simplified to “direct reduction + subsidy” and the service of “double compensation for buying expensive” is provided.

In conjunction with the tens of billions of subsidies launched in March, it is expected that this energy-saving shopping will greatly stimulate the shopping desire of mainland citizens, which will benefit the company`s revenue growth.

Strategy：
Buy-in Price: $147.50, Target Price: $162.00, Cut Loss Price: $137.00

Source: Phillips

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JD Sees Seven Units Worth $14 Billion Each After Mega Sales Haul

by Jane Zhang and Denise Wee

This year, another two subsidiaries — Jingdong Property Inc. and Jingdong Industrials Inc. — submitted listing applications to the Hong Kong Stock Exchange.

Source: Bloomberg

https://finance.yahoo.com/news/jd-sees- ... 59247.html

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JD.com plans to launch 3 new $140b-revenue firms

Chinese ecommerce platform JD.com aims to establish three new businesses with over 1 trillion yuan (US$139.9 billion) in revenue and 70 billion yuan (US$9.8 billion) in net profits as part of its “ambitious goals” for the next two decades.

The company also plans to have five JD enterprises rank on the Fortune Global 500, where JD.com currently ranks 46th.

In addition, it aims to have seven publicly listed companies with a total market value of US$14 billion.

Some of its listed firms include JD Health, JD Logistics, and Dada Group. It is eyeing Hong Kong listings for JD Property and JD Industrials.

JD.com is also looking to build a global supply chain infrastructure that accounts for 80% of the world’s economic volume.

These goals all fall under the company’s “35711 Vision,” which was announced as part of its 20th anniversary celebrations.

The group recorded US$149.3 billion in revenue for its 2023 financial year, a 4.39% decline from the previous period.

Source: Tech In Asia

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JD.com (9618 HK)

2Q23 Results Preview: Stabilising Growth And Strategically Support 3P Expansion

Given continued focus on restructuring and 3P sales, JD is expecting a tempered topline growth for 2023.

However, JD saw high single-digit GMV growth in 2Q23, factoring in slightly lower growth in June due to the high base.

We expect better recovery visibility in 2H23 as consumer sentiment gradually improves, albeit at a moderate pace.

JD is pivoting its focus to GMV growth and strengthening “Everyday Low Price” consumer mindshare.

Maintain BUY with a target price of HK216.00 (US$55.00).

Source: UOBKH

https://research.uobkayhian.com/content ... 1d35805fc5