Jinwu Financial News | Sealand's research report indicates that jd.com (09618) announced a revenue of 260.4 billion yuan for Q3 2024 (YoY +5%, QoQ -11%); gross profit of 45 billion yuan (YoY +16%, QoQ -2%), operating profit of 12 billion yuan (YoY +29%, QoQ +15%), net income of 12.8 billion yuan (YoY +56%, QoQ -6%), net income attributable to the parent company of 11.7 billion yuan (YoY +48%, QoQ -7%), and Non-GAAP net income attributable to the parent company of 13.2 billion yuan (YoY +24%, QoQ -9%). As of September 30, 2024, the company has repurchased a total of 3.6 billion dollars this year. According to the new share repurchase plan effective from September 2024, the company can buy back shares worth up to 5 billion dollars (including American Depositary Shares) by the end of August 2027.

The firm indicated that jd.com’s retail revenue for Q3 2024 was 225 billion yuan (YoY +6%, QoQ -12%), primarily driven by increases in active users and order volume. During Q3 2024, jd.com launched an upgraded ‘Spring Dawn Plan’ with 15 new initiatives, including ‘Three Major Star Level Rules Upgrade,’ investing over 100 billion yuan in traffic support and over 100 million yuan in advertising subsidies, which resulted in a year-on-year increase of over 20% in the number of transactions by third-party merchants and over 30% increase in order volume.

The firm also stated that jd.com Logistics recorded operating revenue of 44.4 billion yuan for Q3 2024 (YoY +7%, QoQ stable), with an operating profit margin increasing by 4.0% to 4.7% year-on-year. On October 16, 2024, jd.com Logistics announced a partnership with Taotian Group to fully integrate with the Taobao Tmall platform, offering services such as its integrated supply chain solutions, jd.com Express, and jd.com Freight to Tmall merchants, covering the entire supply chain process including warehousing, express delivery, and freight. The system integration is expected to be completed by mid-October, likely contributing additional external revenue growth in the future.

The firm stated that considering jd.com’s retail business continues to benefit from the old-for-new national subsidy policy and the improvement in jd.com Logistics profit margins, it has raised the company’s revenue forecasts to 1139.9/1207.5/1273.7 billion yuan for the following years, and increased the net income attributable to the parent company to 37.7/43.1/47.5 billion yuan, corresponding to diluted EPS of 12.4/13.8/15.1, with Non-GAAP net income of 45/51.1/55.4 billion yuan, corresponding to Non-GAAP PE ratios of 9/8/7X. According to the SOTP valuation method, the firm gives jd.com a total target market cap of 523.1 billion yuan in 2025, corresponding to a target price of 164 yuan / 177 Hong Kong dollars, maintaining a “buy” rating.