The company's 3Q2024 revenue increased 5.12% year on year, and non-GAAP net profit increased 23.85% year on year. The company announced the 2024 three-quarter report: 1-3Q2024 achieved operating income of 811.833 billion yuan, up 4.27% year on year, realized GAAP net profit of 31.505 billion yuan, up 51.63% year on year, and achieved net profit from non-GAAP to mother of 36.533 billion yuan, up 36.39% year on year.

Looking at the single-quarter split, 3Q2024 achieved operating income of 260.387 billion yuan, a year-on-year increase of 5.12%, achieved GAAP net profit of 11.731 billion yuan, a year-on-year increase of 47.82%, and achieved non-GAAP net profit of 13.174 billion yuan, an increase of 23.85% year-on-year.

The company's 3Q2024 comprehensive gross margin increased by 1.65 percentage points, and the cost ratio increased by 0.76 percentage points during the period 1-3Q2024, the company's comprehensive gross margin was 16.11%, up 1.18 percentage points from the previous year. Looking at the single-quarter split, 3Q2024's comprehensive gross margin was 17.30%, up 1.65 percentage points from the previous year.

The 1-3Q2024 company's expense ratio for the period was 12.62%, up 0.34 percentage points year on year. Among them, sales/management/finance/R&D/fulfillment expenses were 3.83%/0.79%/0.24%/1.56%/6.20%, respectively, with a year-on-year change of +0.36/ -0.15/-0.01/+0.01/+0.12 percentage points, respectively. The 3Q2024 company's expense ratio for the period was 12.93%, up 0.76 percentage points from the previous year. Among them, the sales/management/finance/R&D/fulfillment expenses ratio was 3.84%/0.89%/0.26%/1.69%/6.25%, respectively, with a year-on-year change of +0.63/ -0.11/-0.03/+0.16/+0.10 percentage points, respectively.

Release a new repurchase plan to benefit from the continuing replacement policy for home appliances

3Q2024 repurchased a total of 31 million Class A common shares, totaling $0.39 billion. As of September 30, 2024, the company had repurchased a total of 255.3 million Class A common shares, totaling US$3.6 billion. The company announced a new repurchase plan in August 2024, effective in September 2024. Shares worth up to 5 billion US dollars can be repurchased over the next 36 months to the end of August 2027. Since August 26, 2024, trade-in government subsidy activities have been launched in JD in more than 20 locations across the country, including Beijing, Guangzhou, Shanghai, Zhejiang, and Sichuan. In addition, 3Q2024 French luxury brands Balenciaga and Saint Laurent have officially entered JD to open official flagship stores.

Raise profit forecasts and maintain “buy” ratings

The company's 3Q2024 performance exceeded our previous expectations, mainly due to the company's continuous optimization of the supply chain and product structure, and the continuous increase in gross margin. We raised our forecast for the company's 2024/2025/2025/2026 non-GAAP net profit to mother by 4%/3% to 45.25/51.633/56.358 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.