Citibank released a research report stating that JD-SW (09618) has had a good start this year by promoting a nationwide trade-in program through collaborations with major provinces like Hubei, Jiangsu, and Hunan. It continues to lead, believing that JD.com's platform covers over 200 qualified subcategories, with participating consumers coming from more than 90% of counties and rural areas. This is mainly attributed to JD.com's advantages in first-party supply chain and omnichannel strategy.
Citibank stated that it believes JD.com is providing the most extensive national coverage, positioning the company as the preferred partner for many provincial and local governments. It is thought that the strength of the JD.com platform and its ability to capture the sustainability of the trade-in plan may be underestimated by investors. It is believed that JD.com’s proactive positioning in the trade-in plan should support GMV and revenue growth in the first half of this year exceeding expectations, and the market has an upward adjustment risk regarding its forecasts, initiating a 90-day observation of positive catalysts.
