China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

JD/PDD/E-Commerce Sector Report: JD May Have Better-Than-Expected Performance in 618

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[JD.com (JD US, SELL, TP US$32) Preview]: Short-Term Demand Doesn’t Indicate a Long-Term Trend

[JD.com (JD US) Target Price Change]: JD May Face 5bn Profit Reduction for Subsidy Campaign

[JD.com (JD US) Target Price Change]: Painful Transition Weighs on Both Topline and Margin

[JD.com (JD US, SELL, TP US$27) Earnings Preview]: Slow-Growth and Competitive Pressure Remain

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>JD reported 1Q23 revenue in-line vs. cons., while non-GAAP net income beat cons and our est. 99% and 74%, respectively.   </li>
<li>It’s early to say whether JD is getting out of the puddle, as (1) revenue grew just 1.4% YoY in 1Q23,  (2) the effect of its management change remains uncertain.</li>
<li>We maintain SELL, but raise JD’s 2023 non-GAAP net margin from prior 3.2% to 3.34%, and raise TP to US$ 30.  </li>
</ul>


JD reported 1Q23 revenue in-line vs. cons., while non-GAAP net income beat cons and our est. 99% and 74%, respectively.   
It’s early to say whether JD is getting out of the puddle, as (1) revenue grew just 1.4% YoY in 1Q23,  (2) the effect of its management change remains uncertain.
We maintain SELL, but raise JD’s 2023 non-GAAP net margin from prior 3.2% to 3.34%, and raise TP to US$ 30.  


[JD.com (JD US, SELL, TP US$30) Target Price Change]: Painful Transition Continues Amid Margin Beat

JD.com Inc (ADR)

[JD.com (JD US, SELL, TP US$30) Target Price Change]: Painful Transition Continues Amid Margin Beat