Glonghui, May 17 | UBS released a report stating that JD's first-quarter results beat expectations, and revenue increased 7% year-on-year, in line with expectations. Adjusted net profit increased 17% year-on-year to 8.9 billion yuan, exceeding expectations by 19%, mainly due to strong gross profit from JD retail and loss to profit from JD Logistics. The bank expects JD's total commodity transaction volume (GMV) to achieve double-digit growth in the first quarter and remain strong in April. By business division, the department store product business was the highlight of the first quarter. The year-on-year growth rate accelerated to 8.6%. I believe the strong momentum will continue. The outlook for the electronics business remains mixed, as demand for mobile phones and home appliances is resilient, but this is partly offset by weak demand for personal computers. The bank raised JD's adjusted net profit forecast from 2024 to 2026 by 3% to 4%, raised the adjusted earnings forecast per share by 6% to 8%, raised the target price for JD US stocks from $37 to $40, and raised the target price for H shares from HK$144 to HK$156, maintaining a “buy” rating.