Investment Rating - The report maintains a Neutral rating for Dada Group (DADA US) with a target price of 1.57 [4][9]. Core Insights - Dada Group's business adjustments are expected to have a short-term impact, but the performance in JD's ecosystem is strong, laying a foundation for long-term growth [3]. - In Q3 2024, Dada Group reported revenues of 2.4 billion RMB, a year-on-year decline of 7%, which was better than market expectations [1][7]. - The adjusted net loss for the quarter was 59 million RMB, corresponding to a loss rate of 2%, which was also better than market forecasts [1][3]. Summary by Sections Q3 2024 Performance - Dada Group's revenue for Q3 2024 was 2.4 billion RMB, down 7% year-on-year but above expectations [1][7]. - Dada Express revenue increased by 39% due to a rise in same-city delivery orders from chain brands [1][2]. - JD's instant delivery revenue fell by 40% due to a decline in advertising revenue and reduced fulfillment service income [1][2]. Operational Highlights - JD's instant delivery service saw a 100%+ year-on-year increase in monthly active users and order volume [2]. - The number of instant delivery stores increased by over 70% year-on-year to more than 600,000 [2]. - Dada Express completed orders and gross revenue grew by 36% and 33% year-on-year, respectively, due to improved pricing competitiveness [2]. Outlook and Valuation - The report anticipates that adjustments in JD's instant delivery business will continue until 2025, with uncertainties in revenue from advertising monetization [3]. - The revenue forecasts for 2025-2026 have been adjusted downwards primarily due to uncertainties in advertising monetization, leading to an expected loss of 430 million RMB and 245 million RMB for those years [3][11]. - The target price has been revised down to 1.50, maintaining a Neutral rating [3][9].
达达（DADA）：交银国际研究：业务调整短期影响持续，京东场域表现优异，为长期增长奠定基础
交银国际·2024-11-15 01:55