Investment Rating - The report maintains a "Buy" rating for JD (JD US) with a target price of $40.00, indicating a potential upside of 20.7% from the current price of $33.14 [1][2][11]. Core Insights - The report anticipates that JD's revenue for Q3 will meet expectations, with a slight improvement in profit. Retail growth remains robust, driven by daily necessities, while losses in the food delivery segment are narrowing [2][7]. - The company is expected to achieve a total revenue of RMB 1,331,641 million for 2025, with a growth rate of 14.9%. Adjusted net profit is projected at RMB 29,316 million, reflecting a net profit margin of 2.2% [6][14]. Financial Performance Summary - **Revenue Forecasts**: - 2025E: RMB 1,331,641 million, with a growth rate of 14.9% [6][14]. - 2026E: RMB 1,423,703 million, with a growth rate of 6.9% [6][14]. - 2027E: RMB 1,522,435 million, with a growth rate of 6.9% [6][14]. - **Profitability Metrics**: - Adjusted operating profit for 2025E is projected at RMB 15,943 million, with an adjusted operating profit margin of 1.2% [6][14]. - Adjusted net profit for 2025E is projected at RMB 29,316 million, with a net profit margin of 2.2% [6][14]. - **Sales Breakdown**: - Product sales are expected to reach RMB 1,050,729 million in 2025E, with a slight increase in both electric and non-electric categories [6][14]. - Service revenue is forecasted to be RMB 280,912 million in 2025E, reflecting a decrease from previous estimates [6][14]. Market Position and Trends - JD's retail business is expected to maintain steady growth, with a year-on-year increase of 10% in retail sales, particularly in daily necessities [2][7]. - The food delivery segment is showing signs of improvement, with a reduction in losses and an increase in order volume compared to Q2 [2][7]. Stock Performance - The stock has a 52-week high of $45.21 and a low of $30.39, with a market capitalization of approximately $44.79 billion [5][11]. - Year-to-date performance shows a decline of 4.41% [5]. Analyst Coverage - The report is part of a broader coverage of internet and education companies by the research team at CMB International, which includes various other companies with "Buy" ratings [11][13].