Citi believes JD's position to be the first to enter the trade-in program should support GMV and revenue growth in the first half of this year to exceed expectations.
The Zhitong Finance App learned that Citibank released a research report saying that JD Group-SW (09618) started well this year, promoted the national trade-in program through cooperation with major provinces such as Hubei, Jiangsu and Hunan, and continued to take the lead. It believes that JD's platform covers more than 200 qualified subcategories, and that the participating consumers come from more than 90% of counties and rural areas. This mainly benefits from the advantages of JD's first-party supply chain and omni-channel strategy.
Citi said it believes JD is providing the broadest national coverage, positioning the company as the preferred partner for many provincial and local governments. It believes that the strength of the JD platform and its ability to capture the sustainability of trade-in programs may be underestimated by investors. It believes that JD's position to enter the trade-in program first half of this year should support GMV and revenue growth in the first half of this year to exceed expectations. There is a risk that the market will adjust its forecasts upward, and launch a 90-day positive catalyst observation.
