The company's 2Q2024 revenue increased 1.20% year on year, and non-GAAP net profit increased 68.98% year on August 15. On August 15, the company announced its 2024 semi-annual report: 1H2024 achieved operating income of 551.446 billion yuan, up 3.87% year on year, and achieved GAAP net profit of 19.774 billion yuan, up 53.98% year on year. Corresponding diluted EPS was 6.34 yuan, achieving a net profit of 23.359 under the non-GAAP scale billion yuan, up 44.66% year over year.
Looking at the single-quarter split, 2Q2024 achieved operating income of 291.397 billion yuan, a year-on-year increase of 1.20%, and achieved GAAP net profit of 12.644 billion yuan, a year-on-year increase of 92.13%. The corresponding diluted EPS was 4.09 yuan, achieving a net profit of 14.46 billion yuan under the non-GAAP scale, an increase of 68.98% over the previous year.
The company's 2Q2024 comprehensive gross margin increased by 1.37 percentage points, and the cost ratio increased by 0.30 percentage points during the period 1H2024. The company's comprehensive gross margin was 15.54%, up 0.95 percentage points from the previous year. Looking at the single-quarter split, the consolidated gross margin of 2Q2024 was 15.76%, up 1.37 percentage points from the previous year.
The 1H2024 company's expense ratio for the period was 12.48%, up 0.14 percentage points year on year. Among them, sales/management/finance/R&D/fulfillment expenses were 3.83%/0.74%/0.23%/1.50%/6.17%, respectively, with a year-on-year change of +0.24/ -0.17/-0.001/-0.06/+0.13 percentage points, respectively. The 2Q2024 company's cost rate for the period was 12.40%, up 0.30 percentage points from the previous year. Among them, the sales/management/finance/R&D/fulfillment expenses ratio was 4.07%/0.73%/0.24%/1.45%/5.91%, respectively, with a year-on-year change of +0.23/ -0.09/ +0.09/ +0.03/+0.12 percentage points, respectively.
Continue to repurchase shares and deepen strategic cooperation with brands
2Q2024 repurchased a total of 136.8 million Class A common shares, totaling $2.1 billion. As of June 30, 2024, the company had repurchased a total of 224.3 million Class A common shares, totaling USD 3.3 billion, and the remaining amount of the company's repurchase plan was approximately USD 0.4 billion. 2Q2024 JD has signed strategic cooperation agreements with many brands such as Xiaomi, Lenovo, and OPPO to deepen strategic cooperation in various areas such as smart products, intelligent supply chains, and AI technology integration. 2Q2024 A number of pharmaceutical companies' new specialty drugs have been launched for the first time on the JD Health platform.
Raise profit forecasts and maintain “buy” ratings
The company's 2Q2024 profit side performance exceeded our previous expectations, mainly due to the year-on-year increase in the company's gross margin, and the company's profitability still has some room for improvement. We raised our forecast for the company's 2024/2025/2025/2026 non-GAAP net profit to mother by 24%/31%/34% to 43.541/49.888/54.587 billion yuan.
The company's platform ecosystem continues to improve, profitability has improved, and the “buy” rating is maintained.
Risk warning: The recovery process of consumer desire and confidence fell short of expectations, and competition in the industry intensified.