Jinwu Finance News | China Securities Co.,Ltd. releases Q3 performance preview of jd.com (09618). The trade-in policy boosts the growth rate of revenue in the third quarter, with an expected year-on-year revenue growth of 5% to 260.1 billion yuan. JD.com's retail revenue is expected to increase by 5.1% to 222.9 billion yuan year-on-year. Benefiting from the faster growth of 3P compared to 1P (increased proportion of 3P), gradual recovery of clean base due to adjustment of free shipping threshold, as well as improved profitability of the logistics sector, it is expected that JD.com's Non-GAAP net margin in Q3 will increase year-on-year to 4.34%, compared to 4.29% in the same period last year, maintaining overall stability. Looking ahead to the fourth quarter, considering the temporary increase in industry competition during the peak season of November 11, some of its impacts are offset by the increased proportion of 3P and the normalization of the free shipping threshold base. It is expected that the retail and group profit margins in the fourth quarter may come under pressure year-on-year, depending on the intensity of investment during November 11, with the November 11 growth rate expected to be no less than 618 growth rate.

The bank expects the company's revenue in 2024 and 2025 to be 1134.5 billion yuan, and 1201.9 billion yuan, respectively. The Non-GAAP net income is expected to be 42.255 billion yuan and 44.453 billion yuan, respectively. Maintaining a 'buy' rating, with a target price of HK$189.15, corresponding to a PE multiple of 13 times the group's 2024 earnings.