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

[winston]

vested

JD.com (9618 HK)

Negative Impact On Top-line Growth In 2H23 Due To Restructuring; Recovery In 2024

JD is expecting tempered top-line growth for 2H23 given the adverse impact from restructuring and a sluggish macro backdrop.

However, 3Q23 GMV growth is projected be solid at 8-9% after stripping out the impact of reorganisation.

In view of the weak visibility of macro improvement, we expect lukewarm consumer sentiment to continue into 4Q23 despite strong seasonality.

JD continues to focus on its Low Price Strategy as the core strategic approach for Singles Day 2023.

Maintain BUY with a lower target price of HK$183.00 (US$48.00).

Source: UOBKH

https://research.uobkayhian.com/content ... d0537f927c

[winston]

vested

Weaker than expected 3Q23 performance

Expect JD Retail revenue growth to be flat y-o-y in 3Q23, revised down from our previous forecast of 3%

Weaker consumption and strategic adjustment for FMCG segment are key reasons

Cut FY23F/FY24F/FY25F non-GAAP earnings by 10%/12%/11% on slower JD Retail revenue growth

Maintain BUY as we expect growth momentum to pick up in FY24 post-strategic adjustment; TPs lowered to HK$206/ US$52

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=16485

[winston]

vested

Morningstar Slashes JD.com, Inc. (JD.US)'s Fair Value by 51%

Morningstar, an investment research institution, slashed its fair value on JD.com, Inc. (JD.US) by 51% to US$43, equivalent to about HK$167, and cut its 10-year revenue CAGR forecast to 3% from 6%.

Morningstar lowered its non-GAAP net profit CAGR forecast to 6% from 14%, reflecting that JD.com, Inc.'s strategy of shifting to a lower-price will take longer than expected.

Related News: CLSA Foresees JD 3FQ Rev. to Only Gain 1.1% YoY to RMB246B, Adj. NP to Sink 9.8% to RMB9.1B

Morningstar's order of preference for the e-commerce sector remains PDD Holdings Inc. (PDD.US), Alibaba Group Holding Limited (BABA.US) and JD.com, Inc..

Morningstar said that JD.com, Inc. is facing competitive pressure as Chinese e-commerce firms return to low-price competition.

Self-operated platform of JD.com, Inc. adopts JD LOGISTICS (02618.HK), which provides high-end services, making the selling prices of goods higher than its peers, failing to cater to the trend of consumption downgrading.

Related News: Citi Axes JD.com, Inc. (JD.US) TP to US$43, Rating Buy

As for third-party sales platforms, JD.com, Inc.'s strength is in home appliances as compared with other competitors, but demand in China property market will only recover modestly in the medium to long term.

Source: AAStocks Financial News

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

[winston]

vested

JD.com (9618 HK / JD US) - Waiting for growth re-acceleration

Summary (9618 HK): JD.com will report 3Q23 result in mid-November.

In light of a relatively muted consumption trend, a high base effect, intense competition and on-going impact from restructuring adjustment, 3Q23 revenue growth is expected to stay more or less flat year-on-year (YoY).

JD Retail's gross merchandise value (GMV) growth is expected to decelerate to mid-single digit YoY given overall online sales of physical goods in China also decelerated to 7% YoY in 3Q23.

Going into the seasonally strong 4Q23 and the “11.11” promotional period, we believe subdued consumption sentiment and competitive pricing discount are likely to cap any meaningful rebound of growth for JD albeit a modest sequential improvement is still expected.

While management has created initiatives to focus on delivering customer value and grow 3P business, they have yet to show GMV conversion has caught up or made meaningful progress to enhance the value-for-money product categories in light of the broader trend of consumption downgrades.

The stock is trading at an undemanding valuation of around 8x forward price-to-equity (P/E) (or around 7x P/E, excluding cash), suggesting that the current share price is pricing in an ex-growth scenario.

We believe share price is likely to stay range bound in the near-term until more clarity on growth re-acceleration.

The post-3Q23 management update would be a key event to watch out – update on the “Singles Day” performance, restructuring update and 2024 outlook.

We revise down earnings estimates by 3-5% in the next two years.

We update our fair value estimate to HKD162.00 based on sum of the parts (SOTP) methodology and is implying a forward P/E multiple of 13x, which is a -1 s.d. to historical average. BUY.

Source: OCBC

[winston]

by behappyalways:-

JD.com sells ovens at "low prices across the entire network" and criticizes Li Jiaqi for monopolizing prices

京東「全網低價」賣烤箱 批李佳琦壟斷價格｜方念華｜FOCUS全球新聞 20231109@tvbsfocus

https://m.youtube.com/watch?v=wq5gFcKRiXE

[winston]

vested

Mixed fortunes for JD.com

33 percent growth in net profit to 7.9 billion yuan (HK$8.5 billion) during the third quarter.

Net revenue of 247.7 billion yuan for the quarter, missing analysts' average estimate of 249.2 billion yuan, according to LSEG data.

The revenue represents a yearly growth of 1.7 percent, while its net product revenues decreased by 0.9 percent.

More than 1,600 warehouses operated by itself and over 2,000 warehouses operated by third parties.

JD Logistics (2618) swung to a net profit of 214 million yuan in the third quarter from a loss of 287 million yuan during the same period last year. Revenue amounted to HK$41.7 billion, representing year-on-year growth of 16.5 percent.

JD Health (6618) reported that its third-quarter operating profit surged by 1.26 times year-on-year to 175 million yuan.

Source: Reuters

https://www.thestandard.com.hk/section- ... for-JD.com

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vested

Chinese e-commerce giant JD.com removes veteran executive as retail CEO after brutal Singles’ Day price war

JD.com CEO Sandy Xu Ran will take over leadership of JD Retail from Xin Lijun, the company announced on Wednesday

The shake-up comes days after the end of the annual Singles’ Day shopping festival, which saw intense competition between JD.com and rival Alibaba

by Ben Jiang

Source: SCMP

https://www.scmp.com/tech/big-tech/arti ... d5bebad988

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vested

JD-SW: Noah Wealth Files Malicious Lawsuit to Mislead Investors & Public

JD-SW (09618.HK) issued a statement, acknowledging that it has noted the widespread media and public attention, given to the "Camsing Case."

As an unwitting victim, JD-SW has been dragged into said malicious lawsuit that has lasted for four years, resulting in significant damage to the company's reputation and interests, the statement added.

JD-SW criticised Noah Wealth and Gopher Asset, for disregarding investors' trust, refusing to review their internal management issues and attempting to mislead investors and the general public, by maliciously initiating unreasonable high-value lawsuits against JD-SW.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

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vested

Chinese e-commerce giant JD.com wins antitrust lawsuit against Alibaba, which was ordered by a Beijing court to pay US$141 million in damages

The Beijing High People’s Court on Friday ruled that Alibaba ‘abused its market dominance’, using the tactic known as ‘picking one from two’

JD.com asserted that monopolistic practices have hampered competition in China’s e-commerce market and hurt the rights of merchants and consumers

by Iris Deng

Source: SCMP

https://www.scmp.com/tech/big-tech/arti ... ed-beijing

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vested

JD.com probes unit over dodgy business practice

JD.com (9618) said its Nasdaq-listed subsidiary Dada Nexus was found to have certain suspicious practices casting doubt on its online advertising and marketing services revenues and operations and support costs for the first three quarters of 2023.

Mainland media reported that the incident involved deceit by a certain individual and the company has reported to the police and the incident has limited impact to the firm.

Source: Reuters

https://www.thestandard.com.hk/section- ... s-practice