In a recent research report, CCB International noted that JD.com (JD, Financial) recorded a 5.1% year-over-year increase in revenue for the third quarter, in line with expectations. The company's non-GAAP net profit rose by 24% compared to the previous year, exceeding both the bank's and market expectations by 19% and 16%, respectively. This strong performance was primarily attributed to the better-than-expected profit margins in JD Retail and JD Logistics.
Looking ahead, CCB International anticipates a 5.8% year-over-year revenue increase for JD.com in the fourth quarter, driven by initiatives like the trade-in program and the full-period benefits of the Double 11 promotions. The non-GAAP net profit is projected to reach 8.5 billion RMB, reflecting a 0.8% increase from the previous year, with a non-GAAP net profit margin expected to be 2.62%.
Moreover, CCB International has raised its earnings forecast for JD.com's 2024 fiscal year by 5%, while keeping the predictions for 2025 and 2026 mostly unchanged. The bank maintains its "Outperform" rating for JD.com's H-shares with a target price of HKD 212.3.
