Jinwu Financial News | According to BOC International Development Research Report, JD Logistics (02618)'s revenue for the 3rd quarter of 2024 was in line with expectations, and profits were significantly better than expected. Revenue increased 7% year over year, with internal revenue/external integration/other external revenue up 8%/1%/8% year over year. The adjusted net interest rate was 5.8%, the highest level in the quarter since listing.
The bank expects profit margins to enter a phase of relative stability. Maintaining revenue growth for the full year of 2024, the adjusted net profit was raised 30% to 7.9 billion yuan, corresponding to a profit margin of 4.4%, of which the adjusted net profit/profit margin for the fourth quarter was 2.2 billion yuan/ 4.4%. The bank expects the company's profit margin release to enter a relatively stable stage in 2025. Although there is still room for improvement in cost reduction and efficiency measures, the company may increase investment to drive revenue growth. Also, income tax will enter a normal state of payment in 2025. The bank raised its target price from HK$16.3 to HK$18.0 based on an adjusted net profit of 7.9 billion in 2025 and a price-earnings ratio of 13 times the industry average, to maintain purchases.
