BOCOM International·2024-08-16 05:23Investment Rating - The report assigns a "Buy" rating for JD US [3]. Core Views - The report highlights that JD US's Q2 2024 performance met expectations, with revenue of RMB 291.4 billion, a year-on-year increase of 1%. The adjusted net profit rose by 69% year-on-year to RMB 14.5 billion, exceeding market expectations by 47% [5][6]. - The target price for JD US has been raised from USD 40 to USD 41, indicating a potential upside of 51.9% from the current price [5][6]. Financial Performance Summary - Q2 2024 revenue breakdown: - Product revenue: RMB 233.9 billion, with a 12% quarter-on-quarter increase and 0% year-on-year change. - Service revenue: RMB 57.5 billion, a 12% quarter-on-quarter increase and 6% year-on-year increase [9]. - Gross margin improved by 137 basis points year-on-year, driven by enhanced supply chain capabilities and reduced subsidies [5][6]. - Adjusted operating profit margin increased by 0.7 percentage points to 3.9% year-on-year [5][6]. Future Outlook - The revenue forecast for 2024 has been adjusted upwards by 13%, with an expected adjusted net profit growth of over 20% year-on-year [6]. - The report anticipates continued improvements in profit margins due to enhanced supply chain capabilities [6]. - The company aims to balance market share, profit growth, user experience, and stable shareholder returns [6]. Key Financial Metrics - Revenue projections for 2024E: RMB 1,139.1 billion, with a year-on-year growth of 5% [7]. - Adjusted net profit for 2024E is projected at RMB 42.8 billion, reflecting a year-on-year increase of 24.9% [7]. - The price-to-earnings ratio for 2024 is expected to be 7 times, with a PEG ratio of 0.3 [6].