Dada(DADA) 交银国际证券·2024-05-21 08:02Investment Rating - The investment rating for Dada Group (DADA US) is Neutral, with a target price adjusted to USD 1.90, reflecting a potential downside of 5.5% from the current price of USD 2.01 [1][8]. Core Insights - Dada Group's Q1 2024 performance showed total revenue of RMB 2.45 billion, a year-on-year decline of 3%. Dada Now's revenue increased by 57%, driven by higher delivery volumes from chain brands, while JD Daojia's revenue fell by 28% due to strategic adjustments and a focus on core JD app channels [1][2]. - The company is undergoing a business adjustment phase, with an expected overall revenue decline of 5% for 2024. Dada Now's revenue growth is projected at 35%, while JD Daojia's revenue is anticipated to decrease by 30% [2][3]. - The report indicates that the second quarter may experience the most significant impact from business adjustments, with an overall revenue decline forecasted at 9% [2][3]. Financial Summary - For the fiscal year ending December 31, 2024, total revenue is projected to be RMB 9.94 billion, a decrease of 5.4% compared to 2023. Net loss is expected to be RMB 753 million, with an adjusted net profit margin of 7.6% [3][9]. - The operating costs as a percentage of revenue increased to 75% in Q1 2024, up from 55% in the same period last year, primarily due to rising costs associated with increased delivery volumes [1][5]. - The company reported a net loss of RMB 1.9 billion in Q1 2024, with an operating loss margin of 15% [5][6]. Operational Highlights - Dada Group upgraded its instant retail brand to "JD Express," achieving over 70% year-on-year growth in monthly active users and order volume in the JD ecosystem during Q1 2024 [2][5]. - The company has seen significant growth in specific product categories, with convenience store GMV increasing by over 500% and categories like alcohol and home appliances doubling in sales [2][5]. - The management team has been adjusted recently, but the business restructuring is ongoing, indicating a focus on long-term strategic goals despite short-term losses [2][3].