Glonghui, April 19 | UBS released a report stating that JD disclosed a total repurchase of 1.2 billion US dollars of shares in the first quarter the evening (18th), which is equivalent to about 2.8% of the total number of common shares issued at the end of December last year, far exceeding expectations. On an annualized basis, it is equivalent to a yield of about 12%. The Group implemented a total of 2.1 billion US dollars in the repurchase plan from March 2021 to March of this year, and the new plan also implemented a new plan of 500 million US dollars. The bank believes that although the pace of repurchases of JD may change in the future, it believes that with its strong cash position and free cash flow, it is confident that the repurchases will be sustainable. Despite JD's strong cash position in the past few years (accounting for about 50% to 60% of market value) and gross profit continuing to exceed expectations, the Group's valuation ratio has been under pressure. The bank believes that investors have not given much importance to its cash balance, or due to low previous shareholder returns. However, the Group's announcement yesterday should send a strong message and commitment to the market, thereby releasing the value of shares. Furthermore, the bank believes that this year is JD's implementation year, and user investment and merchant ecology will still be the focus. Given the Group's strong free cash flow (which the bank predicts to reach $7 billion in fiscal year 2024), there is room to accelerate the pace of repurchases and shareholder returns. The bank gave JD US stocks a “buy” rating, with a target price of 37 US dollars.