"BOCOM INTL: JD-SW (09618) third quarter profit better than expected, while the growth of retail led by Dabai remains steady, maintaining a 'buy' rating"

BOCOM INTL released a research report stating that the total revenue of JD.com, Inc. Sponsored ADR Class A group (09618, JD.US) is expected to increase by 13% year-on-year to 294.62 billion RMB. The adjusted net profit is expected to be 4.2 billion RMB, with a profit margin of 1.4%, slightly better than the market's previous expectations. The bank maintains its target price of 164 Hong Kong dollars/40 US dollars and a "buy" investment rating. The bank expects the retail business to maintain steady growth, with a year-on-year increase of 10%. The daily category maintains double-digit growth, while the appliance category's growth has slowed down due to the high base effect of last year's national subsidy. The scale of takeaway orders in the third quarter is higher than in the second quarter, and UE has narrowed its loss by improving fulfillment efficiency and subsidy efficiency. This further promotes cross-selling with retailers, and it is expected that there will be more synergies during the e-commerce promotion period in the fourth quarter.