JD(HK:09618) Tianfeng Securities·2025-03-14 10:18Investment Rating - The investment rating for JD Group is "Buy" with a target price set at HKD 157.2, maintaining the rating for the next six months [5]. Core Views - JD Group's Q4 2024 performance exceeded expectations, with revenue reaching CNY 347 billion, a year-on-year increase of 13.4%. The company also reported a significant increase in net profit, with Non-GAAP net profit rising by 34.5% to CNY 11.3 billion [1][4]. - The report highlights the positive impact of government subsidies and the optimization of product categories, which are expected to drive sustainable growth in market share and order volume [2][4]. - JD Logistics is expanding its international presence and enhancing operational efficiency, with revenue growth of 10.4% in Q4 2024, indicating a strong performance in both domestic and international markets [3][4]. Summary by Sections Financial Performance - In Q4 2024, JD Group achieved total revenue of CNY 347 billion, with product revenue at CNY 281 billion and service revenue at CNY 66 billion, reflecting year-on-year growth of 14.0% and 10.8% respectively [1]. - For the full year 2024, total revenue was CNY 1,158.8 billion, a 6.8% increase, with Non-GAAP net profit reaching CNY 47.8 billion, up 35.8% [1]. Retail Segment - JD Retail's revenue for Q4 2024 was CNY 307.1 billion, a 14.7% increase, with operating profit rising by 44.7% to CNY 10 billion [2]. - The electronics and home appliances category saw a revenue increase of 15.8%, driven by the "trade-in" policy and service upgrades [2]. Logistics Segment - JD Logistics reported Q4 2024 revenue of CNY 52.1 billion, a 10.4% increase, with operating profit growing by 37.1% to CNY 1.8 billion [3]. - The company is expanding its logistics capabilities internationally, with a focus on enhancing service offerings for overseas clients [3]. Shareholder Returns - JD Group has completed a share buyback of approximately 255 million A shares, totaling around USD 3.6 billion, and has initiated a new buyback plan of up to USD 5 billion over the next 36 months [1][4].