According to the report published by Bocom intl, Jd.com-SW (09618) should maintain a “buy” rating due to the higher-than-expected improvement of profit margin in Q2. Bocom intl raised its net profit forecast for JD.com by 13% this year, expecting a 20% increase in net income after adjustment compared to the same period last year. The target price of the H-shares in the group has been raised from HKD 155 to HKD 159, up 3% on the basis of a retail pe ratio of 13 times in 2024.

Revenue at JD.com rose 1% YoY to RMB 291.4 billion in Q2, in line with expectations. The gross margin rose by 137 basis points YoY due to factors such as supply chain capacity building, price competition improvement and subsidy reduction. After adjusted, the net profit increased by 69% YoY to RMB 14.5 billion, exceeding the expectations of both bocom intl and institutions by 47% and 49%, respectively. Bocom intl believes that the replacement of old with new, the recovery of platform realization, and other factors will drive the growth of the group's revenue in the second half of this year and improve the marginal speed of growth.