CITIC Securities International: JD Group-SW's first-quarter performance exceeded expectations, maintaining a target price of HKD 209
CITIC Securities International released a research report stating that it maintains the target price for JD.com-SW at HKD 209, with an upside potential of 53%, and a rating of "Buy." The upcoming 618 shopping festival will be a key point for observing the company's strategic adjustments, with attractive valuations for core businesses and a potential shareholder return yield of 7.6%. The report indicates that JD.com's Q1 2025 performance exceeded expectations, with a year-on-year revenue increase of 16%, surpassing expectations by 4%. JD Retail's revenue also grew by 16% year-on-year, exceeding expectations by 5%. Gross profit increased by 20% year-on-year, and the gross profit margin expanded by 0.6 percentage points to 15.9%. The firm noted that recent increased investments in the delivery business have initially yielded satisfactory results, with order volume surpassing 20 million orders. Considering JD Retail and the delivery business, the firm has raised its revenue forecasts for FY 2025/26 by approximately 2% and 3%, expecting JD Retail's revenue to grow by 14% and 11% year-on-year in FY 2025/26
According to the Zhitong Finance APP, China Merchants Securities International released a research report stating that it maintains a target price of HKD 209 for JD Group-SW (09618), with an upside potential of 53%, and a rating of "Buy." The upcoming 618 shopping festival will be a key point for observing the company's strategic adjustments, with attractive valuations for core businesses and a potential shareholder return yield of 7.6%.
The report indicates that JD's Q1 2025 performance exceeded expectations, with a year-on-year revenue increase of 16%, surpassing expectations by 4%. JD's retail revenue also grew by 16% year-on-year, exceeding expectations by 5%. Gross profit increased by 20% year-on-year, with the gross margin expanding by 0.6 percentage points to 15.9%. The firm noted that recent increased investments in the delivery business have initially yielded satisfactory results, with order volume surpassing 20 million orders. Considering JD's retail and delivery businesses, the firm has raised its revenue forecasts for the fiscal years 2025/26 by approximately 2% and 3%, expecting JD's retail revenue to grow by 14% and 11% year-on-year in the fiscal years 2025/26
