On June 21, Gelunhui - Huaxing Capital released a research report and gave JD.com a "buy" rating with a target price of $42. The report pointed out that for revenue performance, the management emphasized that its core GMV (excluding returns, etc.) in the first quarter achieved double-digit growth. For the second quarter performance of 24 years to date, the company reminded investors that appliances and electronic products will achieve higher growth, among which the performance of Android phones is better than that of iPhones, although the latter contributes more revenue on the JD.com platform. General merchandise, especially supermarkets, have already achieved double-digit GMV/revenue growth in the first quarter, and it is expected that this trend will continue for the rest of this year. In terms of user growth, management stated that the number of active users achieved double-digit growth in the first quarter, of which low-tier city users accounted for about 70%. In terms of profit margin, the management emphasized that there is still room for optimization of the procurement cost of its supermarket category to further increase the gross margin. The 2024 sales and marketing (S&M) budget will increase compared to the same period last year, and the low-price trend may continue. Overall, the company maintains its 2024 revenue growth guidance, with growth rate higher than that of the national retail sales total, and profit remains stable year-on-year. The management emphasizes that this year is the "year of execution", and it is expected that there will be no major strategic changes this year.