HTSC·2025-08-15 06:39Investment Rating - The report maintains a "Buy" rating for the company [6][22]. Core Insights - The company's revenue for Q2 2025 reached 356.7 billion RMB, representing a year-on-year growth of 22.4%, exceeding both consensus expectations and previous forecasts [1][11]. - Non-GAAP net profit for Q2 2025 was 7.4 billion RMB, a decline of 48.9% year-on-year, but still better than expected [1][11]. - The retail segment's operational profit exceeded expectations, contributing significantly to the overall performance [1][4]. Revenue and Profitability - The total revenue for JD's retail segment in Q2 2025 was 310.1 billion RMB, with a year-on-year increase of 20.6% [2][21]. - The operating profit for the retail segment was 13.9 billion RMB, reflecting a year-on-year growth of 37.9% [2][11]. - The number of active buyers in the retail segment grew by over 40% year-on-year, marking the seventh consecutive quarter of double-digit growth [2][21]. Business Development and Strategy - The report highlights the rapid development of JD's food delivery business, with peak daily orders exceeding 25 million during Q2 2025 [3][21]. - Management aims to enhance the synergy between the food delivery and retail businesses, focusing on improving core system capabilities and optimizing order algorithms [3][21]. - The company is expected to enter an efficiency optimization phase for its delivery business starting Q3 2025, influenced by the overall growth in order volume [1][3]. Financial Forecasts and Valuation - The report revises the non-GAAP net profit forecasts for 2025-2027 upwards by 25.7%, 9.8%, and 7.1% to 278 billion RMB, 455 billion RMB, and 590 billion RMB respectively [4][19]. - The target price based on SOTP valuation is set at 46.35 USD per ADS and 181.94 HKD per ordinary share, reflecting an increase from previous estimates [4][22]. - The company is currently trading at adjusted PE ratios of 13.3x, 8.1x, and 6.3x for 2025-2027 [4][22].