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Research Alert: CFRA Keeps Hold Opinion On Adss Of Jd.com
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Research Alert: CFRA Keeps Hold Opinion On Adss Of Jd.com
Mar 7, 2024 4:42 AM

07:25 AM EST, 03/07/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our target price of USD30 (from USD40) is an implied 2024 P/E of 12x (5-year mean: 32.7x), on projected ROE of 9%-10% (5-year mean: 14.3%). 2023 revenue rose 4% (JD Logistics: +21% on more new warehouses and clients, and higher average revenue per customer; JD Retail: +2% on increased users, merchants, and offline stores). Net margin rose 1.2 ppt to 2.2% amid improved JD Logistics' margin (likely on better scale efficiency) and gains on development properties sales. These lifted earnings per ADS (EPADS) 2.3x to CNY15.37 but missed our estimate. We think revenue growth will stay at about 2023's level in 2024/2025, led by JD Logistics on overseas business expansion and our projected higher demand for smart warehouses amid growing retail sales. Better scale efficiency will drive a net margin improvement, in our view. However, given competition in the e-commerce/on-demand delivery space, we trim margin projection and lower our 2024 EPADS forecast to CNY17.93 (from CNY21.52), and introduce 2025's CNY18.65.

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