Shenwan Hongyuan Securities·2025-05-14 14:53Investment Rating - The report maintains a "Buy" rating for JD [1][10][22] Core Insights - JD's revenue for FY1Q25 reached RMB 301.1 billion, marking a 15.8% year-on-year increase, the highest quarterly growth in three years [4][10] - Non-GAAP net profit for the same period was RMB 12.8 billion, reflecting a 43.4% year-on-year growth, exceeding expectations [4][10] - The company is expected to increase its investment in the food delivery business starting from FY2Q25, which is anticipated to drive further growth [10] Financial Data and Profitability Forecast - Projected revenues (in RMB million) are as follows: - 2023: 1,084,662 - 2024: 1,158,819 - 2025E: 1,309,433 - 2026E: 1,405,187 - 2027E: 1,493,471 - Year-on-year growth rates for revenue are projected at 3.7% for 2023, 6.8% for 2024, 13.0% for 2025, 7.3% for 2026, and 6.3% for 2027 [2][13] - Non-GAAP net profit projections are: - 2025E: 47,603 million - 2026E: 52,024 million - 2027E: 56,176 million [2][13] - The operating margin for JD Retail increased to 4.9%, while the gross margin reached 15.9% [6][8] Market Data - As of May 14, 2025, JD's closing price was USD 37.25, with a market capitalization of USD 59.4 billion [3] - The stock has a 52-week high of USD 46.45 and a low of USD 23.44 [3]