CICC: Raises JD.com's target price to HKD 194 as the main beneficiary of fiscal stimulus measures

CMB International released a research report stating that JD.com's third-quarter revenue is expected to increase by 4.9% year-on-year to 260 billion yuan, accelerating from the 1.2% growth in the second quarter, mainly due to the growth in GMV and the trade-in policy. The bank predicts that the group's gross profit margin in the third quarter of 2024 will expand by 0.2 percentage points year-on-year, driving a 3% year-on-year increase in the group's net profit to 11 billion yuan. The bank expects the group's revenue for the fiscal year 2024 to increase by 4.5% year-on-year, with JD Retail and JD Logistics revenue increasing by 5.1% and 9.5% respectively, and the group's non-GAAP net profit expected to grow by 20% year-on-year this year. The bank pointed out that the company is a major beneficiary of fiscal stimulus measures, coupled with positive long-term profit growth prospects, raising the target price for US stocks from $42 to $50 and the target price for H shares from HK$165 to HK$194, maintaining a "buy" rating