Goldman Sachs has released a research report stating that considering the higher base in the same period last year, the revenue growth rate of JD.com-SW (09618.HK) this Q2 is expected to slow to about 5% YoY, while the market is expected to increase by 6%, and it is expected to increase by 7% in the first quarter. The bank maintains its 2024 forecast, which is an annual revenue increase of 6% and an annual increase in net profit of 7%. The net profit in the second half of the year is expected to recover and increase year-on-year. Even though the bank adjusted its e-commerce industry preference due to the soft trend of online consumption in June and JD Retail's short-term profit holding steady, it believes that more opportunities will emerge in the industry starting from the second half of this year due to its low base number, turning point in profit in the second half, the potential of advertising technology, and operational leverage within the industry. Additionally, compared with Mainland China's cyber network and global e-commerce, the e-commerce sector's valuation discount is the largest.

The bank recently met with JD.com's management, where they discussed the trend of 6.18 and the preferences of Mainland Chinese consumers, competition among e-commerce companies, the main drivers of the company's growth, profit forecasts for 2024, and shareholder return policies, as well as the recent issuance of convertible bonds (CB). The management mentioned that the company's expectation of achieving high single-digit growth in annual sales remains unchanged, and JD Retail's annual profit is expected to remain steady or increase. The bank also has confidence in the interest rate potential for the long-term total trading volume (GMV) reaching 3%.

Goldman Sachs has a target price of HKD 161 for JD.com's Hong Kong stocks, while its target price for US stocks is USD 41. It maintains a "buy" rating for both.