According to a report issued by China Merchants Securities, JD's revenue growth in the first quarter showed a recovery trend, and strong profit performance drove profits to exceed expectations by 20%. The Group is actively preparing for the 618 promotion and emphasizes providing differentiated value-added services to consumers, while providing potential room for growth in home appliances and long-term real estate market policy support. The bank raised its target price for H shares from HK$142 to HK$169, believing that the valuation is attractive and that recent returns to potential shareholders are higher than those of its peers.

Looking ahead to the second quarter, we see two drivers of growth, including the upcoming 618 promotion; the home appliance trade-in policy. The bank expects the group's revenue to increase by 6.4% year-on-year in the second quarter, and JD's retail revenue by 5.5% year-on-year.

In terms of shareholder returns, the report indicates that from January to May 15, JD has repurchased 49.2 million ADS, with a total amount of 1.3 billion US dollars, reducing the number of tradable shares by about 1.8%. There is still a repurchase amount of 2.3 billion US dollars in its $3 billion repurchase plan up to March 2027. Assuming that the buyback plan is more focused on early execution, that is, $2 billion is executed within the next 12 months, the potential shareholder return (repurchase and cash dividends) is expected to reach around 6.7%, which is attractive to peers.