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 Logistics (2618 HK, SELL, TP HK$9.4) TP Change]: Premium Parcel Delivery Is Increasingly Crowded

[JD Logistics, Inc. (2618 HK) Earnings Preview]: JDL Absent from JD and Douyin Strategies

[JD Logistics(2618 HK) DG to SELL]: JD’s Low-Price Strategy Hurts JD Logistics

JD Logistics(2618.HK) 4Q22 Preview: Topline Reacceleration Supported by Retail Recovery

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>JDL reported 1Q23 revenue that is 2.2% vs. our est. and cons., and non-IFRS net loss that was 32% vs. our est., and 18% vs. cons. </li>
<li>We have concerns about 1) the declining number of external integrated supply chain (ISC) customers; </li>
<li>And 2) declining gross margin, which demonstrate the effects of JD’s low-price strategy, in our view; We maintain JDL’s SELL rating and HK$ 9.20 TP.</li>
</ul>


JDL reported 1Q23 revenue that is 2.2% vs. our est. and cons., and non-IFRS net loss that was 32% vs. our est., and 18% vs. cons. 
We have concerns about 1) the declining number of external integrated supply chain (ISC) customers; 
And 2) declining gross margin, which demonstrate the effects of JD’s low-price strategy, in our view; We maintain JDL’s SELL rating and HK$ 9.20 TP.


[JD Logistics (2618 HK, SELL) Earnings Review]: Declining Customer Count Isn’t a Good Sign