Growth rate improving, capacity increasing, Jingdong's great promotion is expected

In May 2022, Jingdong's App activity was basically the same as in April. GMV growth rate increased significantly, and logistics capacity continued to improve. Sinolink Securities believes that e-commerce prosperity is strongly related to the consumption environment, and Jingdong's self-operated + supply chain model is more stable. Jingdong is given a "buy" rating.

Jingdong Logistics order volume has improved significantly since the last week of April. The backlog of orders had been largely processed by the third week of May. Orders in the fourth week of May were at the same level as last year's period. Jingdong Logistics order index in May grew 26% yoy. Jingdong Express's personal delivery business orders during the 618 opening period (5/31-6/3) increased 140% yoy.

The sales performance of all industries on the Jingdong platform improved, with food and beverage, home goods and other consumer staples categories leading the yoy growth rate. Cosmetics, jewelry and watches, and textile and apparel had the top qoq growth rates, with apprant post-epidemic consumption backfill effects. During the 618 pre-sale period (as of 5/29), Jingdong beauty orders grew 200% yoy, while sportswear and children's apparel pre-sale orders grew 180% and 145% yoy.

1) No late-night experience continuation (the promotion opens at 8:00 p.m.), with increased discounts and simplified gameplay rules.

2) Full-link services guarantee the shopping experience. The services such as "trade-in", "considerate installation", "easy exchange", and "guaranteed value for new" ensure consumers' shopping experience.

3) Quality consumption still has potential, and the turnover of medium- and high-end products is outstanding.

4) Jingdong 618 will unite millions of offline physical stores, which can realize the same frequency of online and offline.