Bank of America Securities released a report stating that it has lowered its non-IFRS net profit forecast for JD.com's logistics (02618.HK) by 3% for last year, reflecting the investment in the fourth quarter and assuming higher outsourcing costs. However, it has also raised its earnings per share forecast for the company for this year and next year by 2%, expecting the investment to gradually bring in more revenue.

The firm believes that after JD.com's logistics management lowered its growth outlook due to a high base in the third quarter earnings briefing, the sell-side expectations have already decreased. However, the firm still considers the management's full-year guidance to be conservative and decided to maintain its fourth quarter profit forecast of 1.82 billion yuan, which is equivalent to a non-IFRS net profit margin of 3.6%.

Bank of America Securities reiterated its 'Buy' rating on JD.com's logistics due to attractive valuations. The target price has been lowered from 21 yuan to 18 yuan, corresponding to an estimated enterprise value multiple of 5.5 times, which is half a standard deviation below the average since 2022.