Jingu Finance News | Southwest Securities issued a research report, jd.com Group (09618) achieved revenue of 260.4 billion yuan in Q3 24 (+5.1% yoy), Non-GAAP operating profit of 13.1 billion yuan (+17.9% yoy), Non-GAAP net income attributable to mother of 13.2 billion yuan (+23.9% yoy), jd.com Retail operating margin at 5.2%, flat year-on-year, up 1.3pp from the previous quarter; as of the end of September 24, TTM free cash flow was 33.6 billion yuan, a decrease of 22 billion yuan from the end of June 24, a decrease of 5.8 billion yuan year-on-year. The change in cash flow is due to delayed payments of accounts payable across quarters, as well as rapid payments generated to support the trade-in project and to lock in sufficient inventory.
The bank pointed out that jd.com Logistics profit margin significantly improved, driving group profits beyond expectations. Looking at the business sectors in Q3 24: ① jd.com Retail revenue of 225 billion yuan (+6.1% yoy), operating profit of 11.6 billion yuan (+5.5% yoy), operating margin at 5.2%, flat year-on-year; ② jd.com Logistics revenue of 44.4 billion yuan (+6.6% yoy), operating profit of 2.09 billion yuan (+624% yoy), operating margin increased to 4.7%, compared to only 0.7% in Q3 23, boosted by optimized product structure, cost reduction, efficiency improvement, and increased order density; ③ New businesses including Dada, JDX, overseas operations, and jd.com Production and Development achieved revenue of 5 billion yuan (-25.7%), with an operating loss of 0.6 billion yuan, mainly due to the impact of JDX's income recognition change.
The bank stated that the company is expected to achieve revenue growth rates of 5.26%/5.09%/5% for the years 2024-2026, with Non-GAAP net income attributable to mother of 45.7/49.2/52.9 billion yuan, respectively. According to information from jd.com Group's earnings conference, the company is confident in achieving growth rates faster than the social retail sector, with a long-term profit margin target in the high single digits, maintaining a "buy" rating, continuous recommendation.
