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

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JD.com

One factor that’s very much working in JD’s favor is the reopening of China’s economy following the end of “zero-COVID” mitigation measures

While these regulations were tossed aside in December 2022, it’s taking time for the world’s No. 2 economy to put supply chain snafus in the rearview mirror.

Thankfully, e-commerce is still in its relatively early stages of growth in China. Once the country’s economy finds its stride, JD.com has the potential to deliver sustained double-digit sales growth.

What really differentiates JD from its peers is the company’s e-commerce operating model. Whereas leading e-commerce provider Alibaba generates a lot of its revenue from third-party sellers, JD brings home the bacon by predominantly acting as a true direct-to-consumer provider.

In other words, JD handles inventory and logistics. The advantage of this approach is that it gives JD far more control over its operating margin than Alibaba.

Something else exciting about JD.com is the expected spinoff of two of its units: Property and Industrial. Not only will spinning off these segments and listing them on the Hong Kong stock exchange potentially reduce any antitrust concerns, but it’ll make it easier for investors to understand how JD makes its money.

With a forward price-to-earnings (P/E) ratio of only 8, JD.com is ripe for the picking.

Source: Trades Of The Day

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4Q23F results likely in line

JD hosted a 4Q23 results preview call with analysts and guided for low single-digit revenue growth for both 4Q23F and FY23F, in line with our expectation.

Management also guided for non-GAAP NPM to improve yoy in FY23F.

We expect revenue and non-GAAP net profit to grow by 2.8% and 8.9% yoy in FY23F.

For FY24F, management expects high single-digit GMV growth, slightly higher than
overall social retail sales.

We maintain our FY23-25F EPS forecasts and reiterate Add rating, with an unchanged DCF-based TP of HK$275.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... CEA752C2A3

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Brokers Expect JD 4Q23 Non-GAAP NP Attributable to Ordinary Shareholders to Fall 6%+; Focus on Guidance

The results will be impacted by the influence of mainland housing market adjustments on the group's end sales of electronics and home appliances, macroeconomic challenges, and other factors.

Investors will be concerned about the progress of the company's business reorganisation and the competitive environment for e-commerce on the mainland.

Morgan Stanley believed that guidance (GMV and revenue growth) and comments from JD's management for 1Q24 would be a catalyst for the stock.

Source: AAstocks.com

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JD.com beats quarterly revenue estimates as heavy discounts buoy demand

The company reported quarterly net revenue of 306.1 billion yuan ($42.52 billion), compared with analysts' average estimate of 300.04 billion yuan,

JD.com said it will repurchase up to $3 billion worth of its shares, including American depository shares, over the next 36 months through March 2027.

The company reported net income attributable to shareholders of 3.4 billion yuan, up more than 13% from 3 billion yuan a year earlier.

Source: Reuters

https://www.investing.com/news/stock-ma ... es-3326215

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JD.com unveils US$3b share buyback

Its adjusted profit, which is a popular measure for tech firms, increased 9.9 percent to 8.4 billion yuan, also beating expectations.

For the full year, JD.com saw its net profit surge 133 percent to 24.2 billion yuan from the previous year.

Revenue in 2023 climbed 3.7 percent to 1.08 trillion yuan.

Source: The Standard

https://www.thestandard.com.hk/section- ... re-buyback

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4Q23: Earnings Beat; US$3b Buyback Plan; Vague Visibility On 2024 Outlook And 3P Monetisation

JD’s 4Q23 revenue edged up 3.6% yoy to Rmb306b, slightly better than our and consensus estimates.

Gross margin improved 15bp yoy to 14.2% in 4Q23.

Non-GAAP operating profit rose 7% yoy to Rmb7.8b, translating to non-GAAP operating margin of
2.5%.

Non-GAAP net profit came in at Rmb8.4b, 16% above consensus estimate, as a result of streamlining of operations.

Adjusted net margin was 2.7%, better than the street’s expectation.

Maintain BUY with a lower target price of HK$116.00 (US$31.00).

Source: UOBKH

https://research.uobkayhian.com/content ... 739e8311fd

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JD Targets Continued Annual Dividend Distribution in Future; Confident for Social Sales of Consumer Goods to Outperform Mkt

JD-SW (09618.HK) declared a final dividend of US$0.38 per share.

Speaking on an earnings call, CFO Su Shan said the dividend hike is to reflect the rapid growth in profits last year, and the group aims to continue its annual dividend in the future.

CEO Ran Xu added that as the Chinese government launches policies to promote consumption, the momentum of consumer recovery is expected to further improve.

Meanwhile, the mainland government's latest policy of encouraging trade-in of consumer goods is also expected to stimulate demand for electronic goods.

Source: AAStocks Financial News

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

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Broker│ Opinion

Jefferies│ Stable execution, dividend and share buyback reflect confidence in outlook

Citi│ Quarterly revenue and net profit beat expectations

BOCI│4Q23 revenue and profit beat expectations, and the improvement in daily necessities business was successful

Nomura│ Quarterly results beat expectations, and 2024 guidance mixed

UBS│ Earnings beat expectations, driven by profitability, and the Company reaffirms commitment to shareholders return

Morgan Stanley│ Watch needed for evidence of JD-SW's return to growth

Daiwa│ Focuses on strengthening users' engagement

Macquarie│ 4Q23 results satisfy, and capital returns continued to improve

JPMorgan│ Quarterly revenue and profit beat expectations, and positive market reaction expected

Source: AAStocks Financial News

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

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Earnings Alert: 4Q23 JD retail revenue grew 3.4%; expect growth pace to pick up post-strategic adjustment

4Q23 JD retail revenue increased 3.4% y-o-y, slightly better than market expectations of c.1% growth

Non-GAAP net profit (before minority interest) fell by 12% y-o-y, largely in line

Cut FY24/25F non-GAAP earnings by 6-9%, to reflect increasing investment in 3P ecosystem

Maintain BUY for its steady growth with undemanding valuation; TPs at HK$145/US$37

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=18538

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Why JD.com Stock Rallied Over 21% in March

by Billy Duberstein

Reported fourth-quarter earnings that handily beat analyst estimates.

JD's stock is trading at a very low single-digit price-to-earnings (PE) ratio.

JD noted it would reauthorize its $3 billion share repurchase program, which will last through 2027.

Declared an annual dividend of $0.76, a 23% increase over the $0.62 annual dividend last year.

JD is no longer a growth stock, but a value

Source: The Motley Fool

https://finance.yahoo.com/news/why-jd-c ... 00876.html