On August 23, JD Logistics, Inc. issued the interim results announcement for 2021. The income in the first half of 2021 was 48.472 billion yuan, an increase of 53.7 percent over the same period last year, with a loss of 15.213 billion yuan during the period. The adjusted net loss of Non-IFRS (non-international financial reporting standards) was 1.502 billion yuan.
Comment
Revenue from external customers leads to rapid revenue growth. The income of external customers is 26.5 billion yuan, an increase of 109.6% over the same period last year, accounting for 54.7% of the total revenue. More than half of the income of external customers indicates that the open model of JD Logistics, Inc. 's business has been verified by the market. Among them, the customer income of the external integrated supply chain was 11.7 billion yuan, an increase of 65.6% over the same period last year, and the number of customers of the integrated supply chain reached 59000, an increase of 58.7% over the same period last year. We believe that with JD Logistics, Inc. 's continued expansion in six major industries, namely, fast consumer, clothing, home appliance furniture, 3C, automobile and fresh, as well as some customers who use its standardized express delivery, express and other logistics services are expected to use integrated supply chain logistics services, the number of external integrated supply chain customers is still expected to maintain a high growth. Among them, the income of other customers reached 14.9 billion yuan, an increase of 164.8% over the same period last year, mainly due to the increase in the number and weight of parcels in express delivery services and the acquisition of cross-express in August 2020.
The growth of outsourcing costs accelerated and the gross profit margin decreased compared with the same period last year. The gross profit margin of 1H21 decreased by 9.2% compared with the same period last year, mainly due to the reduction of government subsidies and preferential policies, and JD Logistics, Inc. strengthened and expanded the logistics network in the second half of 2020. increased the number of operators, warehouse area, the number of integrated transport routes and other logistics infrastructure. Of the operating costs, the outsourcing cost was 19 billion yuan, an increase of 94% over the same period last year. The rapid increase in outsourcing costs is mainly due to the substantial increase in express services, resulting in an increase in the cost of integrated transportation, and the acquisition of cross-express also leads to an increase in outsourcing costs. We believe that with the rapid growth of business volume in the second half of the year and the gradual emergence of economies of scale, gross profit margin is expected to improve.
The logistics infrastructure network has been further consolidated. JD Logistics, Inc. operates about 1200 warehouses, with a total management area of 23 million square meters (including cloud warehouses) and 23 special warehouses for drugs and medical devices, with an operating area of 160000 square meters in the past year. Further cooperation with China Railway Group to create high-quality multimodal transport routes, JD Logistics, Inc. 's two new Sino-Thai and Sino-US charter routes completed their maiden flight in the second quarter.
A solid logistics infrastructure network helps to enhance customer service experience and maintain a leading competitive advantage.
Investment suggestion
Due to the rapid cost growth and changes in the fair value of convertible redeemable preferred shares, we downgraded the company's 202112022max 2023 net profit from 1021.9% to-154.72 billion yuan /-842 million yuan / 1.266 billion yuan. The estimated adjusted net profit is-1.76 billion yuan / 23 million yuan / 2.116 billion yuan respectively, maintaining the "buy" rating.
Risk hint
E-commerce development is less than expected risk; industry competition aggravates the risk; labor costs rise sharply.