According to a research report by bocom intl, jd.com logistics Q2 revenue met expectations, with profits significantly better than expected. Gross margin improvement has driven profitability to achieve a historic high for the quarter, reflecting the company's improved fine operation capabilities. The bank believes that the impact of changes in consumer structure on the revenue side has already been reflected in current expectations. The company has implemented substantial profitability improvements through fine management, optimized transportation algorithm scheduling capabilities (such as reducing the number of transfers), investment in automation equipment, and adjustment of product structure.
The bank has adjusted its revenue forecast and expects a year-on-year increase of 8% in 2024, with a 16% increase in adjusted net profit for 2024, corresponding to a profit margin of 2.8% (up from 2.4%, above the company's 2.5% profit margin upper limit guidance). The company will continue to promote the optimization of the network structure and the improvement of technical capabilities to achieve a steady increase in profitability levels and seek higher income growth at a reasonable profit margin level. The current price of the company corresponds to a 10x PE ratio for 2024, which is lower than the industry average. The bank, based on a constant 13x PE ratio for 2024, raised the target price from HKD 9.8 to HKD 11.3 and upgraded its rating from neutral to buy.
