Morgan Stanley released a research report stating that it reiterates its outperform rating on JD.com-SW (09618) with a 3% target price increase to HK$232.
JD.com has effectively seized the opportunity of the recovery in demand for household appliances and electronic products in the gradually implemented trade-in policy, making its revenue growth in the second half of the year more resilient compared to its peers. The bank expects JD.com's third-quarter revenue to increase by 5% year-on-year to 260 billion yuan, with adjusted net income reaching 11.5 billion yuan, consistent with the upper end of market expectations.
The bank reiterated JD.com as the preferred stock for e-commerce industry, raising its profit forecasts for the current and next year by 2% and 6% to reflect sustainable profit expansion. Additionally, the company is expected to achieve an adjusted operating profit of 12 billion yuan in the third quarter, 8% higher than market expectations, mainly due to the company's cautious investment strategy, while other divisions such as JD Logistics (02618) further drive the group's profit growth.
