Glonghui, May 20 | Macquarie published a research report stating that after a year of organizational restructuring, JD has now entered a new phase. Among them, core categories such as electronic products, home appliances and department stores are showing signs of recovery. The year-on-year increase in the company's retail revenue in the first quarter of fiscal year 2024 improved from 3.4% in the previous quarter to 6.8%, and strengthened JD's strong position in the mainland retail market. Furthermore, since JD's supply-chain-centered strategy stands out from its peers, the bank is more optimistic about its growth prospects and believes it can maintain stable profit performance in a competitive environment. The bank also indicated that a favorable “trade-in” policy may promote the development of JD's core household appliances category. Coupled with the company's outstanding performance capabilities, the company saw JD's merchant base continue to expand, and the frequency of consumer purchases also continued to increase. The bank expects JD retail sales growth to accelerate from 2% in FY2023 to 7% in FY2024. JD's adjusted operating margin will stabilize at 3.3%, which means that the profit for the 2024 fiscal year will increase by 10% year-on-year. At the same time, it also raised its net profit forecast for the 2024 and 2025 fiscal years by 1%, respectively, to reflect the normal growth in the company's profit. Combining the above factors, the bank raised JD's target price from HK$103 to HK$159 and raised the rating to “outperform the market”.