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.com (JD US, SELL, TP US$32) Earnings Review]: Slowing 3C Sales Will Impact 2H, Maintain SELL

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

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

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

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>We expect JD to report C2Q23 revenue in-line vs. cons., and non-IFRS net income 6% vs. consensus.</li>
<li>Although we raised our GMV estimate, our 5% YoY revenue growth estimate is unchanged as we expect 3P take rate decline to partially offset GMV growth.</li>
<li>We maintain SELL and TP but cut FY23 non-GAAP net margin to 3% due to the greater share of lower margin 1P revenue vs. our prior estimate.</li>
</ul>


We expect JD to report C2Q23 revenue in-line vs. cons., and non-IFRS net income 6% vs. consensus.
Although we raised our GMV estimate, our 5% YoY revenue growth estimate is unchanged as we expect 3P take rate decline to partially offset GMV growth.
We maintain SELL and TP but cut FY23 non-GAAP net margin to 3% due to the greater share of lower margin 1P revenue vs. our prior estimate.


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

JD.com Inc (ADR)

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