Understanding the Market | JD Group-SW rose over 9%, will disclose the full-year financial report for 2024 after hours, and the company's performance has been positively rated by multiple major banks
JD.com-SW's stock price rose by more than 9%, with an increase of 9.21% as of the time of publication, reaching HKD 180.3, with a transaction volume of HKD 3.203 billion. The company will disclose its performance for the fourth quarter and the entire year of 2024 after the market closes today. Multiple institutions have expressed optimism about its performance, expecting a year-on-year revenue growth of 9.5% in the fourth quarter and a year-on-year adjusted net profit growth of 13%. The trade-in policy is believed to further drive sales growth, and supply chain efficiency is also continuously improving
According to Zhitong Finance APP, JD Group-SW (09618) rose over 9%, up 9.21% to HKD 180.3 as of the time of writing, with a trading volume of HKD 3.203 billion.
In terms of news, JD Group will disclose its fourth quarter and full-year results for 2024 after the market closes today. JP Morgan believes that the company's fourth quarter performance last year and this year's guidance have upside risks. It also believes that the trade-in policy will have a better-than-expected boost to its revenue growth, and due to its disciplined investments, profit margins will be more resilient than expected. JD's revenue for the fourth quarter of last year is expected to grow by 9.5% year-on-year, exceeding market expectations by 3%. The demand driven by the trade-in policy has alleviated JD's expenditure needs, and observations indicate that JD's investments remain highly disciplined, thus estimating its adjusted net profit to grow by 13% year-on-year, with an adjusted net profit margin of 2.8%.
Citi released a research report stating that JD is expected to achieve robust performance, with total revenue and adjusted EBITDA for the fourth quarter of fiscal year 2024 expected to increase by 9% and 23% year-on-year, respectively. Sales of electronic products benefit from the trade-in policy, while supermarket goods with insufficient penetration maintain strong growth. Direct sales may again grow at a high single-digit percentage year-on-year, and savings from subsidies will also translate into higher profits. CMB International also stated that JD benefits from the trade-in policy, with the expansion of categories and scale continuing to favor JD's sales of electronic products, and supply chain efficiency continues to improve. Therefore, the bank has raised its revenue and profit forecasts for the group's fourth quarter of 2024 by 3% and 12%, respectively