Morgan Stanley wrote in a report that JD-SW (09618.HK) +2.700 (+2.013%) Short selling $383.57M; Ratio 20.241% 's 1Q24 revenue was in line with expectations with earnings beating estimates, mainly due to improved operational efficiency.
The broker expected JD's total revenue for 2Q24 to grow 6.9% YoY, driven by a 6.5% YoY increase in JD Retail's revenue. The company's general merchandise revenue is expected to maintain high single-digit growth in 2Q from a relatively low base. However, core categories will remain under pressure due to the high base. In addition, the broker predicted the company's non-GAAP net profit margin to be 3.05%, compared with 2.97% in 2Q23.
In addition, the broker estimated that JD's total revenue this year will grow by 8.5% YoY, with a non-GAAP net profit of RMB37.7 billion, implying a non-GAAP net profit margin of 3.2%, compared with 3.25% last year. It also raised its non-GAAP earnings per share forecasts for 2024/25/26 by 8%, 5% and 6%.
Morgan Stanley maintained its Equalweight rating on JD and elevated its target price on JD's US shares (JD.US) from US$25 to US$28. Although JD's recovery is on track, the company needs more proof of business improvement amid fierce competition from the 618 shopping festival, the broker commented.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-05-20 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)
