UBS noted in a report that JD-SW (09618.HK) +1.700 (+1.284%) Short selling $196.38M; Ratio 10.404% 's 1Q24 results have beaten expectations. Revenue elevated 7% YoY, in line with expectations. Adjusted net profit rose 17% YoY to RMB8.9 billion, exceeding estimates by 19%, thanks to strong gross profit at JD Retail and a turnaround from loss to profit at JD LOGISTICS (02618.HK) +0.420 (+4.286%) Short selling $12.16M; Ratio 3.818% .
The broker expected JD to achieve double-digit growth in gross merchandise volume (GMV) in 1Q24 and remain strong in April. By business segment, the general merchandise business was the highlight of 1Q, with YoY growth accelerating to 8.6% and a strong momentum that is expected to continue. The outlook for electronics remained mixed, as resilient demand for mobile phones and home appliances was partially offset by weak demand for PCs.
UBS raised its 2024-2026 adjusted net profit forecast by 3% to 4% and adjusted EPS by 6% to 8% on JD. The broker added its target price on JD's US shares (JD.US) from US$37 to US$40 and lifted its target price on JD's HK shares from HK$144 to HK$156, with the Buy rating maintained.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-05-17 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)
