CLSA lowered JD LOGISTICS (02618.HK)'s price target from $27.4 to $21.2 and reaffirmed its Buy rating.
JD LOGISTICS posted a 1Q22 sales growth of 22% YoY, with net loss contracting to RMB1.35 billion, consistent with forecasts. The company's external integrated supply chain unit burgeoned by 25% YoY, driven by solid growth in average revenue per customer (ARPC).
The prevailing Covid pandemic could affect the firm's fulfilment capability and shore up 2Q22 costs, but also present new opportunities given higher client awareness of the importance of integrated logistics. CLSA trimmed JD LOGISTICS' full-year revenue estimate by 6% to indicate the Covid impact.
JD LOGISTICS posted a 1Q22 sales growth of 22% YoY, with net loss contracting to RMB1.35 billion, consistent with forecasts. The company's external integrated supply chain unit burgeoned by 25% YoY, driven by solid growth in average revenue per customer (ARPC).
The prevailing Covid pandemic could affect the firm's fulfilment capability and shore up 2Q22 costs, but also present new opportunities given higher client awareness of the importance of integrated logistics. CLSA trimmed JD LOGISTICS' full-year revenue estimate by 6% to indicate the Covid impact.
