Company profile
JD.com (09618.HK) is a company that started as an e-commerce platform and has evolved into a leading technology and service provider with a core focus on self-operated business models. It has expanded its operations into various sectors, including retail, technology, logistics, and healthcare. The group’s subsidiaries include JD Health, JD Logistics, Dada Group, and others. In the current environment of moderate economic recovery, consumers continue to be highly sensitive to product prices, and the e-commerce industry is fiercely competitive. The company adopts a strategy of low prices and market penetration while also emphasizing quality and service to enhance the shopping experience and frequency of use for its core users.
Overall performance in 2Q24 exceeded market expectations with growing shareholder returns
In 2Q24, JD.com reported a year-on-year revenue growth of 1.2% to 291 billion yuan, mainly driven by the growth of service revenue. In terms of category, product revenue (1P) reached 234 billion yuan, while service revenue (3P) reached 58 billion yuan, with a 6.3% YoY increase. Breaking it down by business segment, JD Retail’s revenue grew by 1.5% YoY to 257 billion yuan, and JD Logistics’ revenue grew by 7.7% YoY to 44 billion yuan. Overall, the company’s Non-GAAP operating profit increased by 33.7% YoY to 12 billion yuan, with an operating profit margin of 4.0%, primarily driven by the beyond-expectation performance of JD logistics. The Non-GAAP net profit attributable to ordinary shareholders of the listed company was 15 billion yuan, a 69.0% YoY increase. In terms of shareholder returns, as of June 30, 2024, the company has cumulatively repurchased US$3.3 billion, representing approximately 7.1% of the total outstanding common shares as of the end of 2023.
JD Retail: Platform ecosystem continues to show healthy improvement, and low prices and subsidies remain strategic focal points in the context of macroeconomic recovery
In the second quarter of 2024, JD.com achieved retail revenue of 257 billion yuan, representing a year-on-year growth of 1.5%, primarily driven by the growth in active users and order volume. Both purchase frequency and order volume achieved double-digit year-on-year growth this quarter, with third-party merchant order volume increasing by 20% year-on-year, reaching a new high in the past two years. Operating profit reached 10.1 billion yuan, with an operating profit margin of 3.9%, an increase of 0.7 percentage points year-on-year, mainly influenced by the reduction in free shipping thresholds and increased promotional marketing expenses. In terms of the breakdown by revenue category
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She graduated from the University of New South Wales with a bachelor's degree in accounting and finance and from the University of Hong Kong with a master's degree in finance. He is currently a licensed analyst at Phillip Securities, mainly responsible for research in the TMT and semiconductor sectors, and has worked in securities companies and family offices.
