Glonghui, May 20 | CICC released a report saying that JD Logistics's revenue for the first quarter was 42.137 billion yuan, up 15% year-on-year, down 11% from quarter to quarter, slightly better than expectations; non-IFRS net profit was 663 million yuan, the best level in the first quarter since listing, corresponding to a 1.6% non-IFRS net profit margin, which exceeded the bank's and market expectations, mainly due to cost reduction and efficiency better than expected. CICC expects that JD Logistics will continue to benefit from the increase in domestic orders this year and keep an eye on the recovery in demand in the external integrated supply chain. At the same time, it is expected that the company's internal order growth this year will continue to benefit from the adjustment of free shipping policies on retail platforms, so revenue from JD and 3P merchants may still maintain the current growth trend. Furthermore, the bank believes that the number of customers in the external integrated supply chain and the average customer revenue per customer are expected to return to a normal growth trend this year, and that the share of external customer revenue will remain high. With the orderly integration of multiple resources, the company's core product service capabilities may continue to improve, and the annual non-IFRS net profit margin is expected to be close to 2%. CICC has basically kept JD Logistics's profit forecast for this year and next two years unchanged. The current price corresponds to 17.1 and 14.1 times the non-IFRS price-earnings ratio for this year and next year, respectively. Considering the increasing certainty of the company's profit margin increase, the target price was raised by 25% to HK$13.7, corresponding to 23 times and 18.9 times non-IFRS price-earnings ratios this year and next two years, maintaining the “outperforming industry” rating.