Investment Rating - The report maintains a "Buy" rating for JD com Inc -SW (09618) with a 6-month target price of 132 6 HKD [1] Core Views - JD com s Q3 2024 performance showed significant improvement in profitability with a 23 9% YoY increase in Non-GAAP net profit attributable to ordinary shareholders reaching 13 2 billion RMB [1] - The company s revenue for Q3 2024 reached 260 4 billion RMB a 5 1% YoY growth with service revenue growing 6 5% YoY to 55 8 billion RMB [1] - JD com initiated a 3 6 billion already repurchased by September 30 2024 representing 8 1% of its outstanding shares as of December 31 2023 [1] Operational Highlights - JD com benefited from the "trade-in" policy with 3C and home appliance categories showing accelerated growth and double-digit increases in active users and shopping frequency for three consecutive quarters [1] - During the 11 11 shopping festival JD com s user count increased by over 20% YoY [1] - JD Retail achieved a 6 1% YoY revenue growth to 225 billion RMB with operating profit increasing 5 5% YoY to 11 608 billion RMB [1] - The electronics and home appliance category grew 2 7% YoY to 122 56 billion RMB while daily necessities and groceries grew 8 0% YoY to 82 053 billion RMB [1] - Third-party merchant orders grew over 30% YoY with user count increasing over 20% YoY [1] JD Logistics Performance - JD Logistics revenue grew 6 6% YoY to 44 4 billion RMB with operating profit reaching 2 086 billion RMB significantly exceeding market expectations of 1 265 billion RMB [1] - JD Logistics expanded its overseas supply chain network opening new self-operated warehouses in the US and Malaysia and planning to increase global self-operated warehouse area by over 100% by the end of 2025 [1] Strategic Initiatives - JD com is focusing on building a second growth curve in categories like daily necessities and apparel with apparel category showing double-digit growth [1] - The company is increasing marketing resources for JD Supermarket aiming for over 30% share of content marketing resources within JD and a 30% increase in external marketing investments [1] - JD Logistics is advancing its "Global Weaving Plan" to enhance its global supply chain network and support Chinese brands in going global [1] Financial Projections - The report adjusts JD com s 2024-2026 revenue forecasts to 11 357/12 335/12 652 billion RMB with YoY growth rates of 4 7%/8 6%/2 6% [1] - Non-GAAP net profit attributable to shareholders for 2024-2026 is projected at 44 9/49 5/50 8 billion RMB [1]
京东集团-SW：24Q3业绩点评：盈利端改善明显，关注后续国补催化