Event
On May 17, JD Logistics, Inc. released the results announcement for the first quarter of 2022. 2022Q1 realized income of 27.351 billion yuan, an increase of 22% over the same period last year; a net loss of 1.35 billion yuan, compared with a net loss of 11 billion yuan in the same period in 2021; and an adjusted net loss of 798 million yuan in Non-IFRS (non-international financial reporting standards), compared with 1.366 billion yuan in the same period in 2021.
Comment
The open model has been verified by the market, and external customers account for more than half of the revenue. 2022Q1's external customer income was 16 billion yuan, an increase of 30.4% over the same period last year, accounting for 58.4%: (1) the customer income of the external integrated supply chain was 6.51 billion yuan, an increase of 24.6% over the same period last year. The high growth rate comes from the increase in the number of customers and revenue per customer. At the end of 2022Q1, the number of customers in the externally integrated supply chain increased by 19.9% to 58818 compared with the same period last year, and the revenue per passenger increased by 3.9% to 110000 yuan. (2) the income of other customers was 9.45 billion yuan, up 34.8% from the same period last year, due to the growth of business volume of express delivery services. The company's income from JD.com Group was 11.39 billion yuan, an increase of 11.9% over the same period last year. 2022Q1, the company further deepens the layout of FMCG, home appliances, furniture, clothing, 3C, automobile and fresh six industries, simultaneously implements the strategy of expanding the industry head and middle waist customer base, and further deepens the scope of cooperation with many industry head customers, including MUJI, Viomi Technology Co., Ltd. and other industry leaders.
Economies of scale released, 2022Q1 profit improved compared with the same period last year. 2022Q1's gross profit margin was 5.3%, an increase of 4.3% over the same period last year, resulting from (1) fine cost management, (2) effective adjustment of customer structure, and (3) improved economies of scale with rapid revenue growth. On the expense side, 2022Q1's sales and marketing expenses account for 3.5% of revenue, year-on-year + 0.5pct, which is mainly used to support external business growth; R & D expenditure accounts for 2.7%, year-on-year-0.3pct; general and administrative expenses account for 2.3%, year-on-year-1.3%, mainly due to the reduction of share payment costs, and the above expense rates are reduced by 1.1pct to 8.5%. 2022Q1's adjusted Non-IFRS posted a net loss of 798 million yuan and a net interest rate of-2.9%, an increase of 3.2pct over the same period last year.
Continue to strengthen international business and consolidate logistics infrastructure. In March 2022, the company opened two intercontinental routes, namely, Hong Kong to Sao Paulo, Brazil, and Zhengzhou to Cologne, Germany. By strengthening the layout of overseas warehousing and trunk network, we can provide more brand customers with end-to-end overseas and cross-border integrated supply chain logistics services. As of 2022Q1, the company operated about 1400 warehouses, an increase of about 100 over the end of last year, and managed a warehousing network area of more than 25 million square meters (including cloud warehouses), an increase of about 1 million square meters over the end of last year.
Investment suggestion
Considering the continuous improvement of the company's profit margin and the impact of the domestic epidemic in the first half of 2022, the net profit of 2022-23 was adjusted to-8.4 billion yuan (original-8.4 billion 12.7 yuan), with an increase of 2.89 billion yuan in 2024. Maintain a "buy" rating.
Risk hint
E-commerce development is less than expected risk; industry competition aggravates the risk; labor costs rise sharply.