UOB Kay Hian noted in a report that JD-SW (09618.HK) +1.700 (+1.284%) Short selling $196.38M; Ratio 10.404% 's 1Q24 revenue rose 7% YoY, slightly beating the broker's and the market's expectations. The group's non-GAAP net profit of RMB8.9 billion also topped broker and consensus forecasts.
UOB Kay Hian broadly kept its forecasts for JD's revenue in 2Q24 and full-year 2024 unchanged, and is confident that the company's revenue will grow by 6% and 7% for 2Q and the full year respectively. The broker also raised its non-GAAP net profit forecast for JD in 2024 by 2%.
Based on improved operating efficiency, The broker predicted adjusted net profit for 2Q and the full year to rise by 2% YoY, implying net profit margins of 3% and 3.3% respectively, but lower than last year's 3.5%.
UOB Kay Hian maintained JD's Buy rating and raised the target price of its HK shares to HK$151 from HK$127, with a target price of US$40 on its US shares (JD.US) , equivalent to 11x projected P/E ratio. The broker remained optimistic about JD's recovery from last year's low base, and believed that the company will achieve high single-digit to double-digit revenue growth based on last year's restructuring.
(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.)
