Investment Rating - The report maintains a "Hold" rating for the company with a target price of HKD 122 / USD 31, indicating a potential upside of 23% for the Hong Kong stock and 15% for the US stock [2][4][9]. Core Insights - The company reported a stable revenue growth of RMB 291.4 billion in Q2 2024, a year-on-year increase of 1.2%, aligning with market expectations. The gross margin improved to 15.8%, up 1.4 percentage points year-on-year, and the adjusted net profit surged by 69% to RMB 14.5 billion, exceeding market expectations by 15.7% [1]. - The retail segment's revenue reached RMB 257.1 billion, reflecting a 1.5% year-on-year growth, driven by enhanced supply chain efficiency and disciplined promotions. The logistics revenue also grew by 7.7% year-on-year to RMB 42.2 billion, achieving a record operating margin of 4.9% [1][3]. - The company is expected to maintain a growth rate exceeding the overall retail market for the year, supported by strong user growth and a robust 3P ecosystem, which saw over 20% growth in order volume year-on-year [1][2]. Financial Summary - The adjusted net profit forecast for FY24 is RMB 40.4 billion, with revenue projections adjusted to RMB 1,129.2 billion for FY24 and RMB 1,188.3 billion for FY25, reflecting a P/E ratio of 8.5x for FY24 and 8.7x for FY25 [2][3]. - The company’s total market capitalization is approximately HKD 331.1 billion, with an average trading volume of HKD 1.036 billion over the past three months [4][9]. - The report highlights a significant increase in the adjusted net profit margin, which is expected to reach 3.6% in FY25, up from 3.2% in FY24 [3][6].
京东集团-SW：利润改善优于预期