Investment Rating - The report maintains a "Hold" rating for the company, with a target price adjusted to HKD 122 / USD 31, reflecting a potential downside of 8% from the current price of HKD 132.4 / USD 34.27 [1][2][3]. Core Insights - The company's Q1 2024 revenue reached RMB 260 billion, a year-on-year increase of 7.0%, slightly above market expectations. Adjusted net profit was RMB 8.9 billion, up 17% year-on-year, with an adjusted profit margin of 3.4%, an increase of 0.3 percentage points [1]. - The report highlights a recovery in performance, particularly in the supermarket category, with a 6.6% year-on-year growth in product revenue. The platform's order volume saw double-digit growth, offsetting a decline in average transaction value due to low pricing strategies [1]. - Logistics profit margins improved significantly, while retail profit margins saw a slight decline. Service revenue grew by 8.8% year-on-year, driven by logistics growth, while retail operating profit margin decreased by 0.5 percentage points to 4.1% [1]. Financial Performance Summary - For FY22, the company reported revenue of RMB 1,046,236 million, with projected revenues of RMB 1,084,662 million for FY23 and RMB 1,146,450 million for FY24E. The adjusted net profit for FY24E is estimated at RMB 35,355 million [2][5]. - The gross profit for FY22 was RMB 147,073 million, with projections of RMB 159,704 million for FY23 and RMB 171,529 million for FY24E, indicating a steady growth trajectory [5]. - The report forecasts an adjusted P/E ratio of 10.0x for FY24E, decreasing to 8.9x by FY26E, reflecting a potential valuation compression over the forecast period [2][5].
京东集团-SW：业绩回暖，利润超预期，零售利润率略有下滑