Core Viewpoint - JD Industrial is the largest service provider in China's industrial supply chain technology and services market, leveraging resources from JD Group to gain a first-mover advantage in the emerging sector, demonstrating technological strength and economies of scale [1] Industry Overview - The industrial supply chain digitalization in China is accelerating, with JD Industrial establishing a leading market position in this emerging field [1] - The company has a significant market share in both the industrial supply chain technology and services market and the MRO procurement service market [1] Business Model - The company utilizes the Taipu supply chain operation system, Mercator standard product library, and a high-turnover, light-asset fulfillment system to optimize operational quality while expanding scale [1] - The platform has approximately 81.1 million SKUs with an information standardization rate exceeding 95% [2] Operational Performance - The company serves around 11,000 key enterprise clients and millions of small and medium-sized enterprises, forming a first-mover advantage in comprehensive digital procurement and supply chain integration services [1] - From 2022 to 2024, the total transaction volume on the platform is expected to grow from 22.3 billion to 28.8 billion yuan, with a compound annual growth rate of approximately 13.8% [2] Future Growth Prospects - The company anticipates significant growth driven by AI applications and overseas expansion, establishing a second growth curve through localized operations in Southeast Asia, Europe, and Latin America [3] - Revenue projections for 2025 and 2026 are 23.56 billion and 28.33 billion yuan, respectively, with year-on-year growth rates of 15.49% and 20.28% [3] Profitability Forecast - Adjusted net profits for 2025 and 2026 are expected to be 1.09 billion and 1.72 billion yuan, reflecting year-on-year growth of 1.40% and 57.38% [3]

据介绍，依托以供应链设施为基础、深度融合数智技术的京东"超级供应链"，京东工业打造了太璞数实 一体化供应链解决方案，更适配目前中国大型工业企业升级转型的内在需求。依托自身在供应链基础设 施与数智技术的双重优势，京东工业陆续发布针对性的十大工业行业场景专属方案，聚焦汽车制造、钢 铁冶金、能源电池、畜牧养殖、白酒制造、光伏发电、物业管理、石油化工、轨道交通及机器人等行业 的大量细分场景。 智通财经APP获悉，京东工业(07618)涨超3%，截至发稿，涨4.58%，报37.02港元，成交额1.95亿港元。 消息面上，据人民网财经报道，近日，第四场京东品酒会在深圳举办。京东工业相关负责人表示，将通 过供应链数智化升级推动工业产业万亿降本，整合供应链，把利润反哺给用户和产业链上下游；推动工 业供应链大模型JoyIndustrial的技术创新和场景应用，用AI技术升级生产方式；通过工业供应链伴随式 出海服务，提高出海企业的供应链效率、降低采购成本。 ...

据介绍，依托以供应链设施为基础、深度融合数智技术的京东"超级供应链"，京东工业打造了太璞数实 一体化供应链解决方案，更适配目前中国大型工业企业升级转型的内在需求。依托自身在供应链基础设 施与数智技术的双重优势，京东工业陆续发布针对性的十大工业行业场景专属方案，聚焦汽车制造、钢 铁冶金、能源电池、畜牧养殖、白酒制造、光伏发电、物业管理、石油化工、轨道交通及机器人等行业 的大量细分场景。 消息面上，据人民网财经报道，近日，第四场京东品酒会在深圳举办。京东工业相关负责人表示，将通 过供应链数智化升级推动工业产业万亿降本，整合供应链，把利润反哺给用户和产业链上下游；推动工 业供应链大模型JoyIndustrial的技术创新和场景应用，用AI技术升级生产方式；通过工业供应链伴随式 出海服务，提高出海企业的供应链效率、降低采购成本。 京东工业(07618)涨超3%，截至发稿，涨4.58%，报37.02港元，成交额1.95亿港元。 ...

Group 1: Key Insights on Xingfu Electronics - The company is backed by Xingfa Group, a leading player in the phosphate chemical and fine chemical industry, ensuring strong supply chain support [8] - It focuses on semiconductor applications, with a complete wet electronic chemical product system, including 60,000 tons of electronic-grade phosphoric acid and 100,000 tons of electronic-grade sulfuric acid, leading the domestic market [8] - The company aims to become a world-class electronic materials enterprise, with ongoing internationalization and diversification strategies [8] Group 2: Key Insights on JD Industrial - JD Industrial is a leading provider of industrial supply chain technology and services in China, with a projected revenue of 20.398 billion yuan and an adjusted net profit of 909 million yuan for 2024 [10] - The company has established a comprehensive digital infrastructure for supply chain management, covering 80 product categories and serving over 11,100 key enterprise clients [10] - The industrial supply chain market in China is vast, with a size of 11.4 trillion yuan in 2024, and JD Industrial holds a market share of 4.1% in the industrial supply chain technology and services market [10] Group 3: Insights on the Coal Industry - The coal industry is experiencing a restructuring due to stricter safety regulations, with a cumulative coal production of 4.402 billion tons from January to November, showing a year-on-year increase of 1.4% [14] - The demand for coal remains stable, with a projected increase in coal consumption in the chemical industry, and the overall coal demand is expected to grow slightly [14] - Investment recommendations include stable high-dividend stocks like China Shenhua and Shaanxi Coal, as well as growth stocks such as TBEA and Huaihe Energy [14] Group 4: Insights on MEMS Sensor Industry - The company is a leading player in high-performance MEMS inertial sensors, with a revenue and net profit CAGR exceeding 38% from 2019 to 2024 [15] - The MEMS technology market is expanding, with applications in consumer electronics, automotive, industrial, and aerospace sectors [16] - The company is actively pursuing new market opportunities, including partnerships in autonomous driving and low-altitude aviation [16] Group 5: Insights on Automotive Industry - The automotive market is seeing a shift towards intelligent and high-end vehicles, with a focus on new energy vehicles and the potential for significant growth in the second-hand car market [24] - Recent data indicates a 9% month-on-month increase in retail sales of passenger vehicles, despite a year-on-year decline [26] - Investment recommendations include companies with strong alpha potential and those benefiting from the ongoing reforms in state-owned enterprises [27]

Core Viewpoint - JD Industrial is positioned as a leading digital industrial supply chain service provider in China, with significant growth potential driven by infrastructure development, industry standards establishment, and asset-light expansion strategies [1][2]. Group 1: Company Overview - JD Industrial has established itself as the largest participant in the domestic MRO procurement service market by 2024, serving 11,100 key enterprise clients and offering approximately 81.1 million SKUs across 80 product categories sourced from around 158,000 suppliers [2]. - The company generates most of its revenue from industrial product (MRO) sales, with projected revenue of 20.398 billion yuan and adjusted net profit of 909 million yuan for 2024, reflecting a CAGR of 25.4% and 21.9% from 2021 to 2024 [3]. Group 2: Market Potential - The Chinese industrial supply chain market is the largest globally, projected to reach 11.4 trillion yuan in 2024, with a digital penetration rate of only 6.2%, significantly lower than the 15% in the U.S. [3]. - The MRO procurement market in China is expected to reach 3.7 trillion yuan by 2024, with a CAGR of 6.1% from 2019 to 2024, while the digital MRO market is projected to grow to 400 billion yuan with a CAGR of 21.7% during the same period [3]. Group 3: Competitive Landscape - JD Industrial holds a market share of 4.1% in the domestic industrial supply chain technology and service market, with the second-largest player at only 1.5%, indicating a highly fragmented market with potential for consolidation through digitalization [4]. - In the MRO procurement market, JD Industrial's market share is 0.8%, with the second player at 0.3%, highlighting the low concentration in the industry [4]. Group 4: Operational Efficiency - The company operates with a high inventory turnover rate of 24 times in 2024, significantly outperforming comparable domestic and international firms, achieved through direct supplier shipments and reduced self-operated inventory [6]. - JD Industrial's focus on digital supply chain infrastructure has led to decreasing marginal costs and a downward trend in expense ratios, with projected per capita sales revenue contribution reaching 25 million yuan [6]. Group 5: Profit Forecast - The company is expected to achieve adjusted net profits of 1.096 billion yuan, 1.735 billion yuan, and 2.301 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 20.5%, 58.4%, and 32.6% [7]. - Based on a target PE of 24X and projected adjusted net profit of 1.735 billion yuan for 2026, the target market value is estimated at 41.2 billion yuan, indicating a 24% upside potential from current levels [7].

Investment Rating - The report assigns a "Buy" rating for JD Industrial (07618) as a first-time coverage [1]. Core Insights - JD Industrial is a leading provider of industrial supply chain technology and services in China, having established a comprehensive digital infrastructure for end-to-end supply chain solutions. By 2024, it is projected to become the largest player in the MRO procurement market in China, serving over 11,100 key enterprise clients and offering approximately 81.1 million SKUs from around 158,000 suppliers [5][18]. - The company is expected to achieve a revenue of CNY 20.4 billion in 2024, with a compound annual growth rate (CAGR) of 25.4% from 2021 to 2024. The adjusted net profit is forecasted to reach CNY 909 million, with a CAGR of 21.9% during the same period [4][25]. - The Chinese industrial supply chain market is the largest globally, with a market size of CNY 11.4 trillion in 2024, but the digital penetration is only 6.2%, significantly lower than the 15% in the U.S. [5][50]. - JD Industrial's market share in the domestic industrial supply chain technology and services market is 4.1%, while its share in the MRO procurement market is only 0.8%, indicating substantial growth potential [5][59]. Financial Data and Profit Forecast - Revenue and profit forecasts for JD Industrial from 2023 to 2027 are as follows: - Revenue: CNY 17.34 billion (2023), CNY 20.40 billion (2024), CNY 24.49 billion (2025E), CNY 29.91 billion (2026E), CNY 35.96 billion (2027E) [4]. - Adjusted net profit: CNY 818 million (2023), CNY 909 million (2024), CNY 1.10 billion (2025E), CNY 1.74 billion (2026E), CNY 2.30 billion (2027E) [4]. - The expected price-to-earnings (PE) ratios are 41 (2023), 36 (2024), 30 (2025E), 19 (2026E), and 14 (2027E) [4]. Industry Overview - The industrial supply chain market in China is characterized by its vast size and the early stage of digital transformation. The MRO procurement market is projected to reach CNY 3.7 trillion in 2024, with a CAGR of 6.1% from 2019 to 2024 [5][55]. - The market is highly fragmented, with JD Industrial being a key player. The company is positioned to benefit from the ongoing digitalization trends, which are expected to accelerate market consolidation [5][58]. - The report highlights that the U.S. leading MRO companies have consistently outperformed the growth of the manufacturing value added, indicating a potential for similar trends in China as the market matures [5][8].

Core Insights - The article discusses the increasing importance of globalization for Chinese enterprises, particularly in the industrial sector, with overseas revenue for some leading companies reaching 30%-40% and showing steady growth [1][3] - JD Industrial aims to build a reliable global service system for outbound industrial enterprises, emphasizing the stability and reliability of supply chains over mere expansion speed [1][3] Group 1: Challenges in Global Expansion - Chinese enterprises face significant challenges when expanding overseas, including complex product standardization, tax system differences, and precise supply-demand matching [3] - Cross-border supply chains encounter notable pain points, such as high logistics costs, compliance standard discrepancies, and weak local supply chain infrastructure in emerging markets [3][5] - Common issues for outbound enterprises include difficulties in finding products, high prices, and delays in fulfillment, particularly concerning non-production materials [3][5] Group 2: JD Industrial's Global Strategy - JD Industrial has made progress in its globalization strategy, establishing partnerships in key overseas markets like Brazil and Indonesia, focusing on resource integration and local fulfillment networks [5] - The company has set up service bases in Vietnam, Thailand, and Hungary, providing services to over 100 enterprises across various sectors, including automotive manufacturing and electronics [5] - JD Industrial has identified three core phases of enterprise globalization and developed four supply chain solutions tailored to each phase, addressing specific needs such as project progression, cost control, and operational efficiency [5][6] Group 3: Technological Advancements - The application of smart technology is a core advantage for JD Industrial in serving outbound enterprises, with significant data accumulation through AI in the past year [6] - The use of the industrial large model JoyIndustrial has drastically reduced material matching time from one week to minutes, enhancing operational efficiency [6] - Supply chain resilience is identified as a key support for global expansion, characterized by visibility, selectivity, and controllability, which are essential for effective overseas operations [6][7]

Core Insights - The core viewpoint of the articles emphasizes the role of JD Industrial in driving supply chain digitalization to reduce costs in the industrial sector, aiming for a trillion-yuan reduction through integrated supply chain solutions and AI technology [1][2]. Group 1: Supply Chain Digitalization - JD Industrial aims to promote supply chain digitalization upgrades to achieve a trillion-yuan cost reduction in the industrial sector by integrating supply chains and returning profits to users and upstream and downstream partners [1]. - The company recognizes that the pain points in upgrading procurement supply chains for industrial enterprises are not merely the lack of suppliers or information systems, as many have already established digital systems [1]. - JD Industrial's approach is likened to a hospital, focusing on maintaining the long-term health and efficiency of procurement systems rather than just completing individual transactions [1]. Group 2: Tailored Solutions and Industry Focus - JD Industrial has developed the Tai Pu integrated supply chain solution, which is tailored to meet the internal demands of large industrial enterprises in China undergoing transformation [2]. - The company has released ten targeted industrial sector solutions, focusing on specific industries such as automotive manufacturing, steel metallurgy, energy batteries, and more, showcasing effective paths for supply chain digitalization upgrades [2]. - The future strategy involves leveraging JD's super supply chain to connect supply and demand accurately, aiding in the digital transformation and cost reduction of Chinese industrial enterprises [2].

Core Insights - The article highlights the challenges faced by Chinese manufacturing companies in cross-border supply chains, including compliance standards, high logistics costs, and weak local infrastructure, with non-production material supply being a critical bottleneck [1][3] - JD Industrial has positioned itself as a key partner for Chinese companies going global, leveraging its global supply chain capabilities and strategic partnerships in markets like Brazil and Indonesia [1][5] Group 1: Challenges in Cross-Border Supply Chains - Chinese manufacturing companies are accelerating their overseas expansion but face significant challenges such as varying compliance standards and high logistics costs [1][3] - The lack of robust local supply chain infrastructure in emerging markets leads to common issues like product unavailability, high prices, and delayed fulfillment [1][3] Group 2: JD Industrial's Solutions - JD Industrial has identified three key phases of overseas expansion for companies: construction phase, trial production phase, and mass production phase, each with distinct supply chain needs [3][5] - The company offers four differentiated supply chain solutions: a general-purpose SaaS platform, a one-stop cross-border product solution, a long-tail procurement solution, and a comprehensive digital service [3][5] Group 3: Future Outlook - With the dual drive of data elements and digital technology, JD Industrial aims to enhance its overseas service network and optimize supply chain solutions to support sustainable development for Chinese companies in international markets [5][6] - The case of JD Industrial exemplifies a comprehensive service system that addresses multiple challenges in cross-border supply chains, demonstrating the necessity of professional supply chain services for Chinese companies going global [6]

Group 1 - The core viewpoint of the articles highlights the transformation of industrial procurement from a decentralized, offline, and manual approach to a centralized, online, and intelligent model, with a projected total procurement amount of approximately 188.3 trillion yuan in 2024 and a digital penetration rate of 11.5%, growing at 16.2% [2] - Central state-owned enterprises are becoming pivotal in this transformation, driven by the issuance of the "Guiding Opinions on Regulating Central Enterprise Procurement Management" (Document No. 53) in July 2024, which emphasizes both "regulation and efficiency" [2] - Advanced technologies such as AI, IoT, and blockchain are shifting procurement from a "transaction tool" to a "productive service platform," indicating that procurement supply chains are evolving into critical infrastructure for enterprise competitiveness and resilience [2] Group 2 - The industrial product circulation has long been constrained by issues such as a chaotic coding system, dialectical specifications, and fragmented information, leading to inconsistencies in product naming and pricing across different enterprises and regions [4] - A solution involves establishing a unified system covering classification codes, identification codes, and attribute codes, achieving a standardization of product descriptions throughout the entire supply chain [5] - Leading companies are transitioning from "transaction-focused" to "supply chain-focused," enhancing end-to-end capabilities through digitization in procurement, which can save approximately 20%-30% in costs and reduce transactional procurement time by about 30% [5] Group 3 - The "hard power" of the fulfillment network is crucial for achieving speed and stability in industrial procurement, as exemplified by JD Industrial's self-operated central warehouse model covering 86 core categories, enabling same-day or next-day delivery [6] - Near-field services targeting small and medium-sized enterprises, such as "park stores," are rapidly expanding, effectively addressing the unpredictable purchasing characteristics of these businesses [6] - The "going global" phase of supply chains is becoming systematic, evolving through stages of brand globalization, digital globalization, and supply chain globalization, with leading platforms replicating domestic governance and standardization systems for overseas operations [6] Group 4 - Intelligent tools, such as the "Customs Management Intelligent Agent," are significantly reducing customs evaluation response times from weeks to minutes, resulting in over 50% reduction in labor costs for outbound clients [7] - As more enterprises enter various stages of overseas construction, standardized inventory and localized compliance systems will become key competitive factors [7]