JD.com, Inc. (JD): A Bull Case Theory

Core Thesis - JD.com, Inc. is viewed positively due to its strong fundamentals, low valuation, and strategic growth opportunities, despite recent operating losses from heavy investments in food delivery [1][4][6] Company Overview - JD.com, Inc. is the largest technology-driven e-commerce retailer in China, headquartered in Beijing, and is part of the NASDAQ-100 and Fortune Global 500 [2] - The company's mission focuses on enhancing customer experience and operational efficiency through advanced technology and a robust supply chain [2] Business Segments - JD Retail operates a direct-sales online platform covering various product categories, ensuring quality control and inventory management [2] - JD Logistics offers an efficient network of warehouses and delivery personnel across China, generating external service revenue and maintaining high profitability [3] - The company has expanded into high-growth areas such as JD Health and industrial supply chain solutions, and is entering the competitive food delivery market [3] Financial Performance - JD.com has faced recent operating losses due to increased SG&A expenses from food delivery investments, but these are expected to decline [4] - The company is trading at historically low valuations, with a P/E ratio of 10.03 and an EV/EBITDA of approximately 7x, indicating potential upside [4][5] - JD maintains a strong balance sheet with $29.85 billion in cash against $14.07 billion in debt, and is executing a $5 billion buyback program with a 2.87% dividend yield [5] Management and Strategy - The management team includes founder Richard Qiangdong Liu and CEO Sandy Ran Xu, who has significant financial expertise [5] - The company is focused on revenue and EBIT growth, with a low volatility (Beta 0.4) and medium-term technical upside projected towards $45 [5] Market Position and Risks - JD.com faces intense competition from Alibaba and Pinduoduo, along with expansion costs and geopolitical/regulatory uncertainties [4] - Despite a ~14% stock depreciation since March 2025, the bullish thesis remains intact due to JD's strong fundamentals and undervaluation [6]