The company's 1Q2024 revenue increased 7.04% year on year, and non-GAAP net profit increased 17.23% year on year. On May 16, the company announced its 2024 quarterly report: 1Q2024 achieved operating income of 260.49 billion yuan, up 7.04% year on year, and realized GAAP net profit of 7.130 billion yuan, up 13.88% year on year, corresponding diluted EPS of 2.27 yuan; achieved net profit attributable to mother of 8.899 billion yuan, up 17.23% year on year.
The company's 1Q2024 comprehensive gross margin increased by 0.47 percentage points, the expense ratio decreased by 0.05 percentage points during the period, and the 1Q2024 consolidated gross margin was 15.29%, up 0.47 percentage points from the previous year.
The 1Q2024 company's expense ratio for the period was 12.56%, down 0.05 percentage points year on year. Among them, sales/management/finance/R&D/execution expenses were 3.56%/0.76%/0.23%/1.55%/6.46%, respectively, with a year-on-year change of +0.26/ -0.27/ -0.01/-0.17/+0.14 percentage points, respectively.
Continue to repurchase shares and increase the construction of a content ecosystem
In terms of repurchases, between January 1, 2024 and May 15, 2024, the company repurchased a total of 98.3 million Class A common shares (equivalent to 49.2 million American depositary shares), totaling US$1.3 billion. The total number of shares repurchased was approximately 3.1% of the company's common share capital in circulation as of December 31, 2023. As of May 15, 2024, the remaining amount of the company's share repurchase plan (valid until March 18, 2027) was $2.3 billion.
In terms of fundamentals, on April 16, 2024, Mr. Liu Qiangdong joined the Jingdong supermarket and the live broadcast room of home appliances and home appliances in the form of an AI digital person, and the number of viewers exceeded 20 million in 1 hour. This live broadcast is the industry's first digital live streaming format for entrepreneurs, and JD will further increase the construction of a content ecosystem. 1Q2024 JD Health has teamed up with a number of pharmaceutical companies including Pfizer and Sanofi to launch the online launch of new specialty drugs, continuing to improve drug accessibility. JD Health also continues to deepen cooperation with pharmaceutical companies such as Shanghai Pharmaceutical, Daiichi Sankyo, and Mandi Pharmaceutical. At the same time, 1Q2024 JD Logistics provides integrated supply chain logistics services for Mingchuang Premium, covering storage and distribution at stores throughout Australia and Malaysia.
Maintain profit forecasts and maintain “buy” ratings
The company's 1Q2024 performance exceeded our previous expectations, but considering that competition on e-commerce platforms will continue in the future and there is still some uncertainty about the company's future investment, we temporarily maintain our forecast for the company's 2024/2025/2025/2026 non-GAAP net profit of 352.50/381.58/40.889 billion yuan. The company's platform ecosystem continues to improve, increase the content ecosystem, continue to repurchase shares, and maintain a “buy” rating.
Risk warning: The recovery process of consumer desire and confidence fell short of expectations, and competition in the industry intensified.