EBSCN·2024-05-17 06:07Investment Rating - The report maintains a "Buy" rating for JD Group-SW (9618.HK) [4][5] Core Views - JD Group's 1Q2024 revenue increased by 7.04% year-on-year, reaching CNY 260.05 billion, while Non-GAAP net profit grew by 17.23% to CNY 88.99 billion [2][4] - The company is actively enhancing its content ecosystem and has continued its stock repurchase program, buying back 98.3 million A shares for a total of USD 1.3 billion, which is approximately 3.1% of its outstanding shares as of December 31, 2023 [3][4] - The report projects Non-GAAP net profits for 2024, 2025, and 2026 to be CNY 35.25 billion, CNY 38.16 billion, and CNY 40.89 billion respectively [4][5] Summary by Sections Financial Performance - 1Q2024 GAAP net profit was CNY 7.13 billion, a 13.88% increase year-on-year, with a diluted EPS of CNY 2.27 [2][4] - The overall gross margin for 1Q2024 was 15.29%, up by 0.47 percentage points year-on-year, while the expense ratio decreased by 0.05 percentage points to 12.56% [2][4] Stock Buyback and Content Ecosystem - From January 1 to May 15, 2024, JD Group repurchased 98.3 million A shares, with a remaining buyback amount of USD 2.3 billion as of May 15, 2024 [3][4] - The company is focusing on enhancing its content ecosystem, including innovative digital marketing strategies and partnerships with pharmaceutical companies to improve drug accessibility [3][4] Future Projections - The report maintains profit forecasts for 2024, 2025, and 2026, with expected revenues of CNY 11,572 billion, CNY 12,295 billion, and CNY 13,004 billion respectively [5][21] - The projected growth rates for revenue are 6.69% for 2024, 6.24% for 2025, and 5.77% for 2026 [5][21]