Ge Long Hui·2025-08-15 03:54Core Insights - JD.com reported better-than-expected results for 2Q25, with revenue of RMB356.7 billion, a 22.4% year-over-year increase, and 6% above Bloomberg consensus, driven by strong JD Retail growth and logistics revenue from food delivery [1] - The national subsidy program significantly contributed to a 20.8% year-over-year growth in retail revenue, reaching RMB310 billion, exceeding the 17.5% consensus [2] - JD's food delivery service, launched in April 2025, saw rapid order growth, with daily orders averaging 15 million in 2Q25, although it incurred substantial operating losses [3] - JD's acquisition strategy includes the purchase of Hong Kong Jiabao Food Supermarket and a takeover offer for CECONOMY, enhancing its globalization efforts [4] - JD's valuation remains at a discount compared to peers, trading at $31.58 per ADS with an enterprise value of $40.96 billion, while projected EBITDA shows significant multiples below industry averages [5] Financial Performance - JD.com achieved a non-GAAP net profit of RMB7.4 billion, down 49% year-over-year due to increased investments in food delivery, but still 38% above consensus [1] - Retail operating margin improved to 4.5%, with operating profit of RMB13.9 billion, outpacing revenue growth [2] Business Expansion - The food delivery segment experienced a significant increase in user engagement, with platform-wide shopping frequency rising over 40% year-over-year in 2Q25 [3] - JD's acquisition of Hong Kong Jiabao Food Supermarket for HK$4 billion and the takeover offer for CECONOMY at €4.60 per share are part of its strategy to leverage supply chain strengths and expand internationally [4] Valuation Metrics - JD's enterprise value is $40.96 billion, with projected CY2025 EBITDA at $3.43 billion, reflecting an 11.9x EV/EBITDA multiple, which is substantially lower than peers trading at 16x and 21x for CY2025 and CY2026, respectively [5]