20230817-招银国际-Grinding_through_growth_strategy_pains_6页_1mb

JD.com (JD US) reported second-quarter 2023 financial results, with revenue growing 7.6% year-over-year to RMB287.9 billion, exceeding forecasts. Non-GAAP net income also beat estimates at RMB8.6 billion, aided by better-than-expected loss reduction in new businesses, leading to a net product margin of 3.0%. However, due to a slight miss in operating profit margin for the JD Retail segment, analysts revised the DCF-based target price down to US$62.0 from US$63.4, reflecting uncertainties in near-term margin expansion while maintaining a BUY rating. Key drivers included strong performance in electronics and home appliances revenue, up 11.4% YoY, offset by softer general merchandise sales. Future outlook projects moderate revenue growth, with cautious expectations for JD Retail in the third quarter. Financial forecasts indicate sustained margin improvements with targets set at 3.5% adjusted net profit margin for 2023.