Matters:

JD SW (9618.HK) will soon announce its results for the fourth quarter of 2022.

Guoxin Internet opinion: 1) 2022Q4, we expect JD Group to achieve revenue of 302.8 billion yuan, +10% year on year, +24% month on month, non-GAAP net profit +59% year on year: The epidemic was repeated in the fourth quarter, the company has established a sense of deterministic compliance. We expect the company's overall revenue growth rate to be 10%, and the company's GMV growth rate is still faster than the market (growth rate of online retail sales of physical goods in the fourth quarter is +6.4%); benefiting from continued declining investment in new business and cost rate control in various sub-sectors, the non-GAAP net interest rate is expected to increase year-on-year in the fourth quarter 0.6 pct 2) Maintain the “buy” rating: Affected by the rise in the number of people infected with the epidemic in the fourth quarter, the year-end promotion was relatively lackluster. After the epidemic was released, consumers' value demands for definitive fulfillment may decline. We adjusted the company's 2022-2024 revenue to 10,536/12,164/1,3841 billion yuan. The adjustment range was -1.1%/-4.9%/-8.3%, adjusted the company's adjusted net profit for 2022-2024 to 261/334/42.9 billion yuan, adjustment range -2.7%/-2.7% /- 3.4% %, maintaining the target price of HK$314-340 and maintaining the “buy” rating.

Risk warning

Policy risks, macroeconomic systemic risks, recurrent risks of epidemics, etc.