Golden Financial News | Haitong International Research pointed out that JD.com (09618) achieved revenue of 260.4 billion yuan in 3Q24, a year-on-year growth of 5.1%; Non-GAAP net income reached 13.2 billion yuan, a year-on-year increase of 23.9%, bullish on consumer goods 'trade-in' to drive revenue growth.

The bank pointed out that in 3Q24, the number of active users and shopping frequency of users maintained double-digit year-on-year growth for three consecutive quarters; merchant orders grew rapidly, with third-party merchant transaction users in the third quarter growing by over 20% year-on-year, and order volume increasing by over 30% year-on-year; Direct sales revenue in 3Q24 was 204.6 billion yuan, remaining stable, with home appliances and electronics up by 2.7% year-on-year, and fast-moving consumer goods up by 8.0% year-on-year; Service revenue in 3Q24 was 55.8 billion yuan, a year-on-year increase of 6.5%; among them, platform and advertising were 20.76 billion yuan, a year-on-year increase of 6.3%, while logistics and other revenue were 35.01 billion yuan, a year-on-year increase of 6.5%.

The bank continued to mention that from June 30, 2024, to September 30, 2024, the company repurchased a total of 31 million shares of Class A common stock, totaling 0.39 billion U.S. dollars; approximately 1.1% of the outstanding common stock as of September 30, 2024. The company has fully utilized the authorized repurchase amount under the $3 billion share repurchase plan announced in March 2024, and adopted and announced a new share repurchase plan in August 2024, effective from September 2024. Under this new share repurchase plan, the company can repurchase shares worth up to 5 billion U.S. dollars during the 36 months from September 2024 to the end of August 2027.

The bank stated that it expects the company's Non-GAAP net income for 2024-2026 to be 45.1, 46.6, and 50.4 billion yuan (originally forecasted at 41, 43.5, 46.6 billion yuan); considering the business structure, the bank values the company on a divisional basis: (1) valuing the retail business at 14x PE in 2025 (previously 12x in 2024); (2) valuing equity of its subsidiaries such as JD Industrial based on the latest post-investment valuation and shareholding ratio, valuing equity of JD Logistics and JD Health based on the market value of November 26, 2024, with a 20% discount. Therefore, the bank values the company at a reasonable market cap of 620.1 billion Hong Kong dollars in 2025, corresponding to a target price of 195 Hong Kong dollars per share (+28%), maintaining an 'outperform the market' rating.