JD: Expect Largely In Line 1Q17 Results; Business is Undergoing More Changes for Better Growth; Maintain Hold Rating
JD will report 1Q17 results on Monday, May 8th before the market opens with a 7:30am EST conference call. We are expecting 1Q17 revenue to be largely in line with consensus expectation of 41% Y/Y growth. While the growth is still high, it is showing some slow down. We believe the main reason is that as the business reaches such a big size, the effectiveness of the company’s executions becomes lower than before. To overcome constrains in the existing structure, JD is undergoing some changes, including the separation of JD Finance and JD Delivery. We believe the relative independence of each division can be positive to JD, as they can operate more efficiently separate than as a whole. We expect such restructuring to take effect in the next couple of quarters. As such, we maintain our Hold rating.
T.H. Capital is an independent research and investment advisory firm specializing in China. We offers real-time, on-the-ground, bottom-up research across a wide spectrum from macro and industry analysis to company specific projects; from China ADRs to international names that have meaningful exposure to China market. We deliver relevant, comprehensive and data driven research adding immense value to clients.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.