Investment Rating - The report maintains a neutral rating for Dada Group (DADA US) with a target price of $1.40, indicating a potential upside of 5.3% from the current price of $1.33 [2][11]. Core Insights - The instant delivery industry is benefiting Dada's express delivery growth, with adjustments in the second delivery business continuing. The revenue forecast for Q4 2024 is expected to decline by 13% year-on-year, with Dada Express revenue adjusted up by 5% due to category expansion, refined operations, and improved fulfillment quality [2][6]. - The report anticipates a net loss of RMB 3.1 billion for 2024, corresponding to a loss rate of 13%. The strategy for JD's second delivery business remains focused on enhancing user perception and increasing order volume and repurchase rates, with revenue growth expected to take time [2][6]. Financial Forecasts - The revenue forecast for 2024 is RMB 9.621 billion, reflecting an 8% year-on-year decline, while the adjusted net loss is projected at RMB 7.1 billion, with a loss rate of 7.4% [6][15]. - For 2025, the revenue is expected to increase to RMB 10.227 billion, representing a 6% year-on-year growth, with an adjusted net loss of RMB 4.3 billion and a loss rate of 4.2% [6][15]. Revenue Breakdown - Dada Express revenue is projected to reach RMB 5.768 billion in 2024, up 1.4% from previous estimates, while JD's second delivery revenue is expected to decline to RMB 3.853 billion, down 2% from prior forecasts [5][6]. - The report outlines that Dada Express revenue for Q4 2024 is expected to be RMB 1.658 billion, showing a 39% year-on-year increase, while JD's second delivery revenue is forecasted to be RMB 732 million, down 53% year-on-year [7][15]. Market Performance - The stock has shown a year-to-date change of 9.92%, with a 52-week high of $2.56 and a low of $1.04, indicating volatility in its market performance [4][6].

Investment Rating - The investment rating for Dada Group (DADA US) is Neutral, with a target price adjusted to $1.40, indicating a potential downside of 10.8% from the current price of $1.57 [4][9]. Core Insights - The report highlights that Dada Group is experiencing short-term impacts from business adjustments, but the performance in JD's ecosystem is strong, laying a foundation for long-term growth [3][4]. - For Q3 2024, Dada Group reported revenues of 2.4 billion RMB, a year-on-year decline of 7%, which was better than market expectations. Dada Express saw a revenue increase of 39% due to higher delivery volumes from chain brands, while JD's same-day delivery revenue fell by 40% due to a decline in advertising revenue and reduced fulfillment service income [1][2][3]. Summary by Sections Q3 2024 Performance - Total revenue was 2.4 billion RMB, down 7% year-on-year, exceeding expectations by 3% [1]. - Dada Express revenue increased by 39% year-on-year, driven by increased delivery volumes from chain brands [2]. - JD's same-day delivery revenue decreased by 40%, attributed to a drop in advertising revenue and lower fulfillment service income [1][2]. Operational Highlights - JD's same-day delivery saw a 100%+ year-on-year increase in average monthly active users and order volume, with peak daily orders during the Double Eleven shopping festival [2]. - Dada Express completed orders and gross revenue increased by 36% and 33% year-on-year, respectively, due to improved pricing competitiveness and operational efficiency [2]. Outlook and Valuation - The report anticipates that adjustments in JD's same-day delivery business will continue until 2025, with uncertainties regarding revenue from marketing monetization impacting forecasts [3]. - The revenue forecast for 2025-2026 has been adjusted downwards primarily due to uncertainties in advertising monetization, leading to an expected loss of 430 million RMB in 2025 and 245 million RMB in 2026 [3][11].

Financial Data and Key Metrics Changes - In Q3 2024, the company reported accelerated high-quality growth, indicating a positive trend in financial performance [6]. Business Line Data and Key Metrics Changes - Specific details regarding the performance of different business lines were not provided in the available content [6]. Market Data and Key Metrics Changes - The content does not include specific market data or key metrics changes [6]. Company Strategy and Development Direction and Industry Competition - The company is focusing on high-quality growth, which suggests a strategic emphasis on sustainable and profitable expansion [6]. Management's Comments on Operating Environment and Future Outlook - Management highlighted the acceleration of growth in Q3 2024, reflecting confidence in the company's operational performance and market position [6]. Other Important Information - The conference call included a reminder about forward-looking statements and non-GAAP financial measures, indicating a focus on transparency and compliance [4]. Q&A Session Summary - The content does not provide specific questions and answers from the Q&A session [6].

Core Insights - Dada Nexus Limited reported a year-on-year growth in monthly transacting users and orders through the JD App, with both increasing by over 100% in Q3 2024, reflecting strong customer engagement and trust [2][6] - The company achieved a 46% year-over-year revenue increase for Dada NOW in the first nine months of 2024, driven by enhanced partnerships with chain merchants and improved delivery service quality [2][6] - Total net revenues for Q3 2024 were RMB 2,429.4 million, a decrease from RMB 2,621.8 million in Q3 2023, indicating challenges in certain revenue streams [3][6] Financial Performance - The net revenues generated from JD NOW decreased to RMB 930.2 million in Q3 2024 from RMB 1,540.3 million in Q3 2023, primarily due to a decline in online advertising and fulfillment services revenues [6][9] - Dada NOW's net revenues increased by 38.6% from RMB 1,081.6 million in Q3 2023 to RMB 1,499.2 million in Q3 2024, mainly attributed to a rise in order volume for intra-city delivery services [6][9] - Total costs and expenses for Q3 2024 were RMB 2,656.7 million, down from RMB 2,862.6 million in Q3 2023, reflecting improved operational efficiency [7][8] Loss Metrics - The loss from operations was RMB 226.8 million in Q3 2024, compared to RMB 210.5 million in Q3 2023, indicating ongoing challenges in achieving profitability [9][10] - The net loss for Q3 2024 was RMB 197.3 million, up from RMB 166.0 million in the same quarter of the previous year [9][10] - Non-GAAP net loss for Q3 2024 was RMB 59.4 million, compared to RMB 9.2 million in Q3 2023, highlighting the impact of operational challenges [10][26] Operational Highlights - The number of orders delivered in Q3 2024 was 477.7 million, with gross billings amounting to RMB 2,323.1 million, reflecting the scale of operations [11][11] - The company has implemented a "Riders' Children Care Program" to support the families of delivery riders, enhancing its social responsibility initiatives [12][13] - Dada has launched various rider care activities in nearly 70 cities, focusing on improving the well-being of riders and fostering community engagement [13][13]

Core Viewpoint - Dada Nexus Limited, a leading local on-demand retail and delivery platform in China, is set to release its unaudited financial results for Q3 2024 on November 13, 2024, after U.S. market close [1]. Group 1: Financial Results Announcement - The unaudited financial results for the third quarter ended September 30, 2024, will be announced on November 13, 2024 [1]. - A conference call to discuss the earnings will take place at 8:30 p.m. Eastern Time on the same day [2]. - Participants must register in advance for the conference call and will receive details including dial-in numbers and a unique access PIN [2]. Group 2: Company Overview - Dada Nexus Limited operates JD NOW, one of China's largest local on-demand retail platforms, and Dada Now, a leading local on-demand delivery platform [4]. - The two platforms are interconnected, with JD NOW increasing order volume for Dada Now, while Dada Now enhances the delivery experience for JD NOW participants [4].

Group 1 - Chinese stocks, including Dada Nexus, experienced a rally following a surprise 50-basis-point rate cut by the People's Bank of China, with Dada Nexus stock rising by 5% after an earlier gain of 15.5% [1] - The Shanghai Composite index surged by 8.1%, marking its best single-day performance since 2008, driven by traders positioning themselves ahead of a weeklong holiday and a positive response to a recent stimulus package [2] - The central bank's directive for banks to lower mortgage rates on existing home loans is aimed at supporting the struggling property market in China, further fueling the stock market rally [2] Group 2 - Dada Nexus specializes in on-demand retail and delivery services and has a close partnership with JD.com, which holds a majority stake in the company [2] - JD.com received a price-target increase from Citigroup, raising its target from $41 to $52, and maintains a buy rating, reflecting investor optimism about its growth potential [3] - The recent market rebound in China is seen as unpredictable, with concerns about the effectiveness of the stimulus package and ongoing economic weaknesses, suggesting that while exposure to China may be beneficial, a diversified portfolio is advisable [4]

Group 1 - Dada Nexus experienced a significant stock price increase of nearly 22% following the sale of shares by Walmart's subsidiary to JD.com, while the S&P 500 index remained flat during the same session [1] - Walmart's Global Pinnacle Corporation divested approximately 87.5 million ordinary shares and nearly 1.9 million American depositary shares (ADS) of Dada, representing over 9% of Dada's equity [2] - JD.com increased its majority stake in Dada to over 63% after the acquisition, indicating strong confidence in Dada's potential [2][3] Group 2 - The CEO of Walmart's China division, Christina Zhu, stepped down from Dada's Board of Directors immediately following the divestment [2] - The recent divestment by Walmart mirrors a previous sale of a similar stake in JD.com, suggesting a strategic shift in Walmart's approach to the Asian market [3] - JD.com's acquisition of Dada shares reflects its confidence in the growth prospects of the Chinese delivery market [3]

交银国际研究 公司更新 | --- | --- | --- | |-----------|------------|----------| | 收盘价 | 目标价 | 潜在涨幅 | | 美元 1.32 | 美元 1.50↓ | +13.6% | 达达集团 (DADA US) 即时配送业务稳健；京东场域渗透为首要战略，短期调整影响持续 | --- | |---------------------------------------------------------------------| | 2024 年 2 季度业绩：收入 23.5 亿元（人民币，下同），同比降 9.5%，其 | | 中达达快送收入增 47%，得益于连锁品牌同城配送单量增加，京东秒送收 | | 入降 44%，由于广告收入下滑及免运门槛降低后履约服务收入下降。调整 | | 后净亏损 1.4 亿元，亏损率 6%，对比彭博市场预期亏损 2 亿元。运营费率 | | 74%，较去年同期 58%上升，因同城配送单量增加导致骑手成本增加；营 | | 销费率 33%，同比降低约 10 个百分点，因京东秒送营销活动减少。 | | --- | |------ ...

Financial Data and Key Metrics Changes - Dada Group's total net revenues in Q2 2024 were RMB2.3 billion, with a year-on-year change primarily due to adjustments in the JD NOW business [5][24] - Non-GAAP net loss in Q2 was RMB142 million, improving sequentially by RMB53 million, with a non-GAAP net loss margin of 6.1%, narrowing by 1.8 percentage points [6][26] - Net revenues from JD NOW were RMB912 million, while Dada NOW revenues increased by 47% year-on-year to RMB1.4 billion [6][24] Business Line Data and Key Metrics Changes - JD NOW saw over 100% year-on-year growth in monthly transacting users and orders through the JD App [5] - Dada NOW's net revenues for the first half of 2024 increased by 51% year-on-year to RMB2.6 billion, driven by new customer expansion and increased penetration among existing partners [6][20] - The number of orders delivered by Dada NOW rose 21% year-on-year to 679 million in Q2 [19] Market Data and Key Metrics Changes - The average daily unique visitors through the JD App increased by over 70% year-on-year, with the user conversion rate up over 20% year-on-year [15] - The number of high-frequency users with the JD App channel increased by over 100% year-on-year [16] - JD NOW's average daily paid order volume increased by over 50% year-on-year in Q2 [17] Company Strategy and Development Direction - The company remains committed to high-quality growth, focusing on user experience and supply enhancement for JD NOW and Dada NOW [22] - Dada NOW is undergoing a brand upgrade to strengthen its image as a high-speed, high-quality delivery service provider [36] - The strategy includes deepening cooperation with JD.com to enhance user penetration and mindshare growth [47] Management's Comments on Operating Environment and Future Outlook - Management noted a stable recovery in consumer confidence, with online sales of physical goods growing by 6.4% year-on-year in Q2 [29] - The company anticipates that adjustments made earlier in the year will lead to sustainable high-quality growth in the long run [38] - Management expressed confidence in achieving breakeven and profitability in the long term, supported by strong growth in the restaurant and beverage sectors [46] Other Important Information - The company had RMB3.6 billion in cash and cash equivalents as of June 30, 2024, and had repurchased approximately USD9.8 million of ADSs as part of a USD 40 million share repurchase program [26] - The company has expanded its geographic coverage for JD NOW services nationwide, enhancing service availability for JD.com users [48] Q&A Session Summary Question: Update on consumer sentiment and competitive landscape - Management reported a stable recovery in consumer confidence, with online sales growth reflecting this trend [29] - JD NOW is gaining market share due to its integration with JD.com and expansion of high-quality supply [31] Question: User consumption patterns and pressure on take rates - Management noted that the supermarket category is stable, while non-supermarket categories are experiencing higher growth rates [40] - The company is actively collaborating with convenience store brands to meet consumer needs [39] Question: Financial guidance and cooperation with JD - Management indicated that JD NOW's GMV faced short-term challenges but is expected to improve with strategic adjustments [43] - The company aims to penetrate a significant portion of JD's user base, with ongoing efforts to enhance user experience [49]

SHANGHAI, China, Aug. 20, 2024 (GLOBE NEWSWIRE) -- Dada Nexus Limited (NASDAQ: DADA, “Dada”, the “Company”, or “we”), China’s leading local on-demand retail and delivery platform, today announced its unaudited financial results for the second quarter ended June 30, 2024. “I am grateful for the Board’s trust and honored to take on the responsibilities of Chairman. With the Board’s vision and leadership, we remain optimistic about the journey ahead of us in the on-demand retail and delivery industries,” said ...