Jinwu Financial News | Haitong Sec reports that JD.com (09618) saw a 5.1% year-on-year revenue growth in Q3 2024. Home appliances and 3C products rose by 2.7% year-on-year, while fast-moving consumer goods increased by 8.0% year-on-year. Service revenue in Q3 2024 grew by 6.5% year-on-year to 55.8 billion yuan, with logistics and other services growing by 6.5% year-on-year, and platform and advertising increasing by 6.3% year-on-year. Highlights of performance include: (1) Healthy growth in gross margin and Non-GAAP net margin: thanks to the company's continuous refinement of supply chain capabilities, enhancing economies of scale and operational efficiency, Q3 2024 gross margin was 17.3%, an increase of 1.7 percentage points year-on-year. Non-GAAP net margin was 5.1%, up 0.8 percentage points year-on-year. (2) By product category, the revenue growth rate of core advantage categories like 3C and home appliances improved; the revenue growth rate for daily necessities exceeded the industry average for three consecutive quarters; supermarket and outfits saw double-digit revenue growth year-on-year. (3) Continuous improvement of the 3P ecosystem: in Q3 2024, the number of third-party merchant transaction users grew by over 20% year-on-year, and order volume increased by over 30% year-on-year; the 'Spring Dawn Plan' launched 'three major star rule upgrades' among 15 new initiatives.

The institution stated that Q3 2024 revenue was 260.4 billion yuan, a year-on-year increase of 5.1%, with Non-GAAP net income at 13.2 billion yuan, growing 23.9% year-on-year. (1) Users & merchants: active users and shopping frequency maintained double-digit year-on-year growth for three consecutive quarters; merchant orders grew rapidly, with a year-on-year growth of over 20% in third-party merchant transaction users and over 30% in order volume in the third quarter. (2) Direct sales: Q3 2024 direct sales revenue was 204.6 billion yuan, remaining stable, with home appliances and 3C products up 2.7% year-on-year and fast-moving consumer goods up 8.0% year-on-year. (3) Services: Q3 2024 service revenue reached 55.8 billion yuan, a 6.5% year-on-year increase; of which platform and advertising revenue was 20.76 billion yuan, up 6.3% year-on-year, and logistics and other revenue was 35.01 billion yuan, up 6.5% year-on-year.

The institution expects that the company's Non-GAAP net income will be 45.1, 46.6, and 50.4 billion yuan for the years 2024-2026. In summary, a reasonable market cap range for the company in 2025 is suggested at 554.2-620.1 billion HKD, corresponding to a reasonable value range for listed in hong kong at 174-195 HKD per share, and a rating of 'outperform the market' is given.