External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<ul><li>Based on NBS data, 7M23 online retail sales GMV/ online physical goods GMV reached RMB8.3/7.0tn, up 12.5/10.0% YoY.</li><li>The YoY growth of online physical goods GMV in July 2023 came in at 5.0% (June 2023: 7.1%; July 2022: 6.3%), which indicates that consumption recovery still takes time.</li><li>Although overall topline growth of e-commerce platforms is likely to face short-term fluctuation due to macro uncertainties, e-commerce platforms are driving revenue growth and scale expansion in an efficient way and targeting for operating efficiency improvement, which likely leads to a benign than expected industry competition, and better than expected earnings growth in 2Q-3Q23. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Based on NBS data, 7M23 online retail sales GMV/ online physical goods GMV reached RMB8.3/7.0tn, up 12.5/10.0% YoY.The YoY growth of online physical goods GMV in July 2023 came in at 5.0% (June 2023: 7.1%; July 2022: 6.3%), which indicates that consumption recovery still takes time.Although overall topline growth of e-commerce platforms is likely to face short-term fluctuation due to macro uncertainties, e-commerce platforms are driving revenue growth and scale expansion in an efficient way and targeting for operating efficiency improvement, which likely leads to a benign than expected industry competition, and better than expected earnings growth in 2Q-3Q23. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Internet – July online retail sales recap

<ul><li>Based on NBS data, 1H23 online retail sales GMV/ online physical goods GMV reached RMB7.2/6.1tn, up 13.1/10.8% YoY, and were both 39% above 1H20 level.</li><li>The YoY growth of online physical goods GMV in June 2023 came in at 7.1% and indicates a two-year CAGR of 6.4%, falling from two-year CAGR of 11.8% in May 2023, as part of the 618 shopping festival sales GMV was frontloaded to May, and the overall consumption sentiment takes time to recover.</li><li>Although e-commerce platforms are escalating investment to enhance consumer mindshare gain amid recovering consumption sentiment, the deterioration of industry competitive landscape is likely to be better than feared given that investments are ROI driven, and this may indicate a better than market expected margin profile for e-commerce platforms in the near term, in our view. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Based on NBS data, 1H23 online retail sales GMV/ online physical goods GMV reached RMB7.2/6.1tn, up 13.1/10.8% YoY, and were both 39% above 1H20 level.The YoY growth of online physical goods GMV in June 2023 came in at 7.1% and indicates a two-year CAGR of 6.4%, falling from two-year CAGR of 11.8% in May 2023, as part of the 618 shopping festival sales GMV was frontloaded to May, and the overall consumption sentiment takes time to recover.Although e-commerce platforms are escalating investment to enhance consumer mindshare gain amid recovering consumption sentiment, the deterioration of industry competitive landscape is likely to be better than feared given that investments are ROI driven, and this may indicate a better than market expected margin profile for e-commerce platforms in the near term, in our view. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Internet – June online retail sales recap

Equity Bottom-Up

<ul><li>JD Retail (JDR) will likely deliver better than our previously expected GMV and revenue growth for 2Q23E, aided by improvement of third-party business operating environment, and better than expected 618 shopping festival results. In addition, JD remains committed in driving for quality revenue and earnings growth.</li><li>In our view, JD will remain cautious in investing heavily to drive for new user acquisition until it finished enhancement of supply chain capabilities, which likely speaks to better-than-expected earnings growth in the near term, while the company still needs to grow user base in order to drive for steady platform business development over the long-run.</li><li>We lifted our DCF-based target price by 1% to US$63.4 to factor in potential better-than-expected JDR revenue and earnings growth, which translates into 20.3x 2023E non-GAAP PE. Maintain BUY.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

JD Retail (JDR) will likely deliver better than our previously expected GMV and revenue growth for 2Q23E, aided by improvement of third-party business operating environment, and better than expected 618 shopping festival results. In addition, JD remains committed in driving for quality revenue and earnings growth.In our view, JD will remain cautious in investing heavily to drive for new user acquisition until it finished enhancement of supply chain capabilities, which likely speaks to better-than-expected earnings growth in the near term, while the company still needs to grow user base in order to drive for steady platform business development over the long-run.We lifted our DCF-based target price by 1% to US$63.4 to factor in potential better-than-expected JDR revenue and earnings growth, which translates into 20.3x 2023E non-GAAP PE. Maintain BUY.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

JD.com (JD US) – Driving for Quality Growth Remains Key Theme

<ul><li>For this year’s 618 shopping festival, per Syntun data, overall industry GMV growth recovered to 14.8% YoY (2022 618: 8.2%), driven by the recovery in growth of horizontal e-commerce platforms (from 0.7% YoY in 2022 to 5.4% in 2023), which we attribute to the efforts spent to drive for consumer engagement improvement, and by the increase in penetration of live streaming e-commerce.</li><li>GMV generated from live streaming e-commerce channel during 618 shopping festival was up 27.6% YoY in this year’s sales promotion.</li><li>Although the growth was still faster than overall industry average, it slowed from 124% YoY compared to 2022, which likely indicates a marginal easing of competition that it brought to traditional horizontal e-commerce platforms. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

For this year’s 618 shopping festival, per Syntun data, overall industry GMV growth recovered to 14.8% YoY (2022 618: 8.2%), driven by the recovery in growth of horizontal e-commerce platforms (from 0.7% YoY in 2022 to 5.4% in 2023), which we attribute to the efforts spent to drive for consumer engagement improvement, and by the increase in penetration of live streaming e-commerce.GMV generated from live streaming e-commerce channel during 618 shopping festival was up 27.6% YoY in this year’s sales promotion.Although the growth was still faster than overall industry average, it slowed from 124% YoY compared to 2022, which likely indicates a marginal easing of competition that it brought to traditional horizontal e-commerce platforms. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Internet – Trends observed from this year’s 618 shopping festival

<ul><li>Although total retail sales growth of 12.7% YoY in May 2023 missed Wind consensus (+13.6% YoY) again, the YoY online retail sales of physical goods of 16.9% (two-year CAGR of 11.8%) was a beat compared to our estimates of 11%, which we attribute to shopping festival promotions of online channels that stimulates consumer’s willingness to shopping online.</li><li>In addition, overall online retail sales GMV growth accelerated to 13.8% YoY in 5M23 (4M23: 12.3%) as online game was less a drag and online travel recorded strong performance, which both likely to sustain in the rest of 2Q23.</li><li>We await for more concrete results to become more bullish on e-commerce industry growth as overall consumption sentiment takes time to recover, while the aggressive efforts that e-commerce platforms spent to drive for better consumer engagement may provide support. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Although total retail sales growth of 12.7% YoY in May 2023 missed Wind consensus (+13.6% YoY) again, the YoY online retail sales of physical goods of 16.9% (two-year CAGR of 11.8%) was a beat compared to our estimates of 11%, which we attribute to shopping festival promotions of online channels that stimulates consumer’s willingness to shopping online.In addition, overall online retail sales GMV growth accelerated to 13.8% YoY in 5M23 (4M23: 12.3%) as online game was less a drag and online travel recorded strong performance, which both likely to sustain in the rest of 2Q23.We await for more concrete results to become more bullish on e-commerce industry growth as overall consumption sentiment takes time to recover, while the aggressive efforts that e-commerce platforms spent to drive for better consumer engagement may provide support. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Internet – May online retail sales recap

China

JD.com Inc is an online direct sales company in China.  The Company offers a wide selection of products through its website and mobile applications.  JD.com sells appliances, computers, digital products, communication products, garments, books, and household items to consumers and vendors.

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JD.com Inc (ADR) (JD US)

China Internet – July online retail sales recap

The YoY growth of online physical goods GMV in July 2023 came in at 5.0% (June 2023: 7.1%; July 2022: 6.3%), which indicates that consumption...

CMB International

China Internet – June online retail sales recap

Based on NBS data, 1H23 online retail sales GMV/ online physical goods GMV reached RMB7.2/6.1tn, up 13.1/10.8% YoY, and were both 39% above 1H20...

CMB International

JD.com (JD US) – Driving for Quality Growth Remains Key Theme

JD Retail (JDR) will likely deliver better than our previously expected GMV and revenue growth for 2Q23E, aided by improvement of third-party...

CMB International

China Internet – Trends observed from this year’s 618 shopping festival

GMV generated from live streaming e-commerce channel during 618 shopping festival was up 27.6% YoY in this year’s sales promotion.

CMB International

China Internet – May online retail sales recap

We await for more concrete results to become more bullish on e-commerce industry growth as overall consumption sentiment takes time to recover

CMB International

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