reports
- Julia Pan Mengyao
- Ming San Soong
JD.com (9618 HK): Resilient user growth and normalised revenue growth ...
JD is expected to see a low single-digit top-line yoy growth in 4Q23 given the adverse impact from restructuring, but partially supported by a stable recovery in the macro backdrop. Meanwhile, JD’s 4Q23 GMV growth is projected to be solid at 6% despite the impact from its reorganisation. As the adverse impact from reorganisation will be eliminated in 2024, JD targets to achieve a high single-digit normalised GMV growth. Maintain BUY with a lower target price of HK$135.00 (US$36.00).
- Bella Lu Yifei
- Greater China Research Team
- Julia Pan Mengyao
- Ken Lee
- Ming San Soong
Greater China Daily: Friday, January 26, 2024
KEY HIGHLIGHTS Sector Automobile Weekly: EV sales rebounded in the third week of 2024 on price cuts, implying lower margins. Top SELLs: BYD, XPeng and Li Auto. Update JD.com (9618 HK/BUY/HK$90.40/Target: HK$135.00) Resilient user growth and normalised revenue growth fostering solid recovery in 2024. TRADERS’ CORNER PetroChina Company Limited (857 HK): Trading Buy range: HK$5.60-5.67 China Telecom Corporation Limited (728 HK): Trading Buy range: HK$3.90-4.00
- Julia Pan Mengyao
- Ming San Soong
JD.com (9618 HK): 3Q23: Tempered top-line growth; 4Q23 outlook to be a...
JD’s 3Q23 revenue edged up 2% yoy to Rmb248b, in line with our and consensus estimates. Gross profit margin improved 1ppt yoy to 15.6% in 3Q23 on strong 3P business revenue growth. Non-GAAP operating profit soared 13% yoy to Rmb11.1b, translating to non-GAAP operating profit margin of 4.5%. Non-GAAP net profit came in at Rmb10.6b, 14% above consensus estimate, as a result of streamlining of operations. Maintain BUY with a higher target price of HK$186.00.
- Bella Lu Yifei
- Damon Shen
- Jieqi Liu
- Julia Pan Mengyao
- Ken Lee
- Ming San Soong
- Terence Chiu
- Tham Mun Hon
Greater China Daily: Thursday, November 16, 2023
KEY HIGHLIGHTS Economics Economic Activity Stronger retail sales in Oct 23, but FAI stays weak. Initiate Coverage Longfor Group Holdings (960 HK/BUY/HK$13.04/Target: HK$17.68) Leading developer and TOD mall operator in China’s Tier 1 and 2 cities. Results JD.com (9618 HK/BUY/HK$105.90/Target: HK$186.00) 3Q23: Tempered top-line growth; 4Q23 outlook to be anchored by resilient 11.11 performance. Tencent Holdings (700 HK/BUY/HK$322.60/Target: HK$425.00) 3Q23: Earnings beat driven by meaningful ...
- Julia Pan Mengyao
- Ming San Soong
China Internet: Muted growth acceleration from 11.11 campaign.
2023’s 11.11 ended with alleviated GMV growth against a soft macro backdrop and intense competitive landscape. Live-streaming e-commerce and adtech upgrades remain key growth catalysts in the e-commerce sector. We opine that the reduced vitality of 11.11 this year stems from rational consumption behaviours and increased consumption of quality products. Maintain MARKET WEIGHT due to lukewarm macro outlook and brutal price wars undermining the profitability of e-commerce companies.
- Julia Pan Mengyao
- Ming San Soong
China Internet: 3Q23 results preview: Solid e-commerce ad growth to dr...
We expect e-commerce ads and overseas e-commerce expansion to be the main driving forces spurring stagnant growth in 3Q23 and beyond. In addition, we are optimistic about the better-the-expected growth in game gross profit and on-track OTA data on the back of strong seasonality. We are also looking out for meaningful progress in AIGC development in 3Q23 and better visibility in 4Q23. Maintain MARKET WEIGHT on the internet sector.
JD JD.COM INC. SPONSORED ADR CLASS A
K3SD BAIDU INC SPONSORED ADR CLASS A
A117ME ALIBABA GROUP HOLDING LTD. SPONSORED ADR
3690 MEITUAN DIANPING 3690 HK
700 HK TENCENT 700 HK
TCOM US TRIP.COM TCOM US
9988 ALIBABA (9988 HK)
9618 JD.COM INC
1024 KUAISHOU TECHNOLOGY
9888 BAIDU INC
PDD PINDUODUO PDD US
9999 HK NETEASE INC
780 TONGCHENG TRAVEL HOLDINGS LTD
9961 TRIP.COM GROUP LTD
- Julia Pan Mengyao
- Ming San Soong
China Internet: 11.11 Campaign – Value-for-money strategy to support g...
Taobao, JD, PDD and Kuaishou kicked off pre-sales/11.11 promotions on 24, 23, 20 and 18 October respectively. 11.11 pre-sales data showed signs of pent-up demand release following pressured 3Q23 NBS consumption data. To revitalise the soft macro environment, multiple platforms have adopted low price strategies for users to acquire high-value products at more affordable prices. We remain upbeat on China’s ecommerce sector pending an encouraging recovery in 4Q23. Maintain MARKET WEIGHT.
- Julia Pan Mengyao
- Ming San Soong
JD.com (9618 HK): Negative impact on top-line growth in 2H23 due to re...
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 ta...
- Bella Lu Yifei
- Damon Shen
- Jieqi Liu
- Jo Yee Ng
- Julia Pan Mengyao
- Ken Lee
- Ming San Soong
- Shirley Wang Xueyi
- Stella Guo Yuting
- Terence Chiu
- Tham Mun Hon
Greater China Daily: Monday, October 16, 2023
KEY HIGHLIGHTS Economics Inflation Sep 23 CPI inflation lower on moderating food inflation. Money Supply Further improvement necessary to entrench economic recovery. Trade Trade on the mend in Sep 23; less pressure on the renminbi. Update China Overseas Property Holdings (2669 HK/BUY/HK$6.45/Target: HK$9.83) Acquisition of construction supervision subsidiary from 830 HK brings both risks and opportunities. JD.com (9618 HK/BUY/HK$117.70/Target: HK$183.00) Negative impact on top-line growth i...
- Jin Yoon
JD 3Q23 Preview: Recovery Could Take Time
What’s New: We nudge down our 2H estimates partly due to continued impact from business adjustments which could start to annualize towards the end of the year. Demand environment could also take time to recover amid lack of direct financial measures from the government. In this note, we highlight the latest updates on the business. Analysts: Jin Yoon
- Julia Pan Mengyao
- Ming San Soong
China Internet: Strong growth in online ads and OTA likely to continue...
China’s internet sector delivered solid 2Q23 results with an earnings beat but this was followed by lukewarm 3Q23 guidance from most companies navigating macro uncertainty. In view of the intense competition and saturated growth, internet companies are ramping up AIGC investment and cross border expansion against a favourable regulatory backdrop. Maintain MARKET WEIGHT on the internet sector due to heavy investment in new initiatives leading to margin erosion.
JD JD.COM INC. SPONSORED ADR CLASS A
K3SD BAIDU INC SPONSORED ADR CLASS A
A117ME ALIBABA GROUP HOLDING LTD. SPONSORED ADR
00700 TENCENT HOLDINGS LTD.
1496219D BEIJING KUAISHOU TECHNOLOGY
3690 MEITUAN DIANPING 3690 HK
700 HK TENCENT 700 HK
TCOM US TRIP.COM TCOM US
9988 ALIBABA (9988 HK)
BEKE KE HOLDINGS INC
9618 JD.COM INC
1024 KUAISHOU TECHNOLOGY
9888 BAIDU INC
PDD PINDUODUO PDD US
9999 HK NETEASE INC
780 TONGCHENG TRAVEL HOLDINGS LTD
9961 TRIP.COM GROUP LTD
- Julia Pan Mengyao
- Ming San Soong
China Internet: China e-commerce seeking growth through international ...
With Chinese e-commerce companies seeking growth overseas, PDD’s cross-border ecommerce platform Temu had rapidly expanded to over 30 countries as at Aug 23 since its launch in Sep 22, reaching global top 10 downloads and achieving 70% of the MAU of Amazon’s app in the US as of Aug 23. Temu is ramping up efforts in low pricing, localisation and its fully entrusted strategy to bolster market share expansion. Its rapid expansion is also gaining increasing attention from global investors majorly fo...
- Jin Yoon
JD 2Q23 Results: 2H Outlook Remains Intact
What’s new: JD’s reported 2Q23 results were above consensus and our expectations. Despite uncertainties in macro, JD could continue to gain market share as the investments in enhancing user experience has led to improvements in user engagement, repeat purchases and ARPU. We maintain our PT at USD70. Analysts: Jin Yoon
- Julia Pan Mengyao
- Ming San Soong
JD.com (9618 HK): 2Q23: Strong earnings beat; 3Q outlook to be the mar...
JD’s 2Q23 revenue rose 7.6% yoy to Rmb287b, above our and consensus estimates. Gross profit margin improved 1ppt yoy to 14.4% in 2Q23 thanks to strong 3P business revenue growth. Non-GAAP operating profit soared 51% yoy to Rmb8.7b, translating to non-GAAP OPM of 3%. Non-GAAP net profit came in at Rmb8.6b, 10% above consensus estimate, as a result of streamlining of operations. Adjusted net margin was 3.0%, better than our expectation. Maintain BUY with a lower target price of HK$199.00.
- Bella Lu Yifei
- Greater China Research Team
- Julia Pan Mengyao
- Ken Lee
- Ming San Soong
- Roy Chen Chengzhi
- Terence Chiu
Greater China Daily: Thursday, August 17, 2023
KEY HIGHLIGHTS Sector Aviation Airlines: Operating data of three major airlines improved further in Jul 23. Maintain UNDERWEIGHT as we believe the recovery has been priced in. Top pick: Air China. Results Hong Kong Exchanges and Clearing (388 HK/BUY/HK$299.60/Target: HK$380.00) 1H23: Historically high NII and derivative ADV boost earnings. JD.com (9618 HK/BUY/HK$140.60/Target: HK$199.00) 2Q23: Strong earnings beat; 3Q outlook to be the market focus. Nexteer (1316 HK/SELL/HK$5.20/Target: HK$2...
- Bella Lu Yifei
- Benjaphol Suthwanish
- Greater China Research Team
- Heidi Mo Jinghui
- Julia Pan Mengyao
- Ken Lee
- Kong Ho Meng
- Kwanchai Atiphophai
- Llelleythan Tan Tan
- Ming San Soong
- Nurul Nazira Binti Abdullah
- Roy Chen Chengzhi
- Tanaporn Visaruthaphong
Regional Morning Notes - Thursday, August 17, 2023
GREATER CHINA Sector Aviation: Airlines: Operating data of three major airlines improved further in Jul 23. Maintain UNDERWEIGHT as we believe the recovery has been priced in. Top pick: Air China. Results Hong Kong Exchanges and Clearing (388 HK/BUY/HK$299.60/Target: HK$380.00): 1H23: Historically high NII and derivative ADV boost earnings. JD.com (9618 HK/BUY/HK$140.60/Target: HK$199.00): 2Q23: Strong earnings beat; 3Q outlook to be the market focus. Nexteer (1316 HK/SELL/HK$5.20/Target: HK$2.7...
- Julia Pan Mengyao
- Ming San Soong
JD.com (9618): 2Q23 results preview: Stabilising growth and strategica...
Given continued focus on restructuring and 3P sales, JD is expecting a tempered top-line growth for 2023. However, JD saw high single-digit GMV growth in 2Q23, factoring in slightly lower growth in June due to the high base. We expect better recovery visibility in 2H23 as consumer sentiment gradually improves, albeit at a moderate pace. JD is pivoting its focus to GMV growth and strengthening “Everyday Low Price” consumer mindshare. Maintain BUY with a target price of HK216.00 (US$55.00).
- Celine Yuan Xinlin
- Damon Shen
- Greater China Research Team
- Jieqi Liu
- Julia Pan Mengyao
- Ken Lee
- Ming San Soong
- Roy Chen Chengzhi
- Terence Chiu
- Tham Mun Hon
- Ziv Ang Sze Champ
Greater China Daily: Tuesday, July 18, 2023
KEY HIGHLIGHTS Economics Economic Activity 2Q23 growth disappoints, raising expectations for stimulus. Sector Aviation Airlines: Three major airlines still loss-making in 2Q23. Maintain UNDERWEIGHT with Air China (753HK/BUY/Target: HK$6.32) as our top pick. Commodities Weekly: China’s disappointing 2Q23 GDP growth weighs on base metals’ demand outlook; no signs of property market stabilisation. Property Latest comments by PBOC official Zou Lan point to further policy easing. Update China Co...
- Jin Yoon
JD 2Q23 Preview: Upside in JD Retail Revs
What’s New: JD Retail revenues could come in better than anticipated amid improving demand environment. JD Retail margins could remain stable YoY as the incremental investments around subsidies and promotions could be offset by better 3P mix and the ongoing business adjustments. In this note, we highlight the latest updates on the business. Analysts: Jin Yoon
- Greater China Research Team
- Julia Pan Mengyao
China Internet: 618 shopping gala – Price war reignited amid tempered ...
The 618 internet shopping gala ended with better-than-feared growth despite the escalating price war in China’s e-commerce sector. However, the overall performance has followed the subdued consumption momentum as reflected in NBS’ monthly data. In response to the soft recovery pace, multiple platforms adopted a low price strategy to capture market share. We remain upbeat on China’s e-commerce sector pending the re-acceleration of recovery pace in 2H23. Maintain MARKET WEIGHT.
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.