Core Viewpoint - JD Logistics achieved revenue of 98.532 billion yuan in H1 2025, a year-on-year increase of 14.1%, with a net profit of 2.959 billion yuan, up 15.27% [1] Group 1: Financial Performance - In H1 2025, JD Logistics reported a net profit of 2.959 billion yuan, a year-on-year increase of 15.27%, and a net profit attributable to shareholders of 2.580 billion yuan, up 13.96% [1] - Adjusted net profit for H1 2025 was 3.339 billion yuan, reflecting a year-on-year growth of 7.1% [1] - Revenue growth accelerated, with H1 2025 revenue growth of 14.1%, surpassing the 11.0% growth in H1 2024 and the 9.7% growth for the entire year of 2024 [1] Group 2: Revenue Sources - Revenue from JD Group reached 32.46 billion yuan, a year-on-year increase of 22.9%, while revenue from external customers was 66.07 billion yuan, up 10.2% [1] - The proportion of revenue from external customers decreased slightly to 67.1% from 69.4% in the same period last year [1] Group 3: Customer Growth and Cost Structure - The number of external integrated supply chain customers increased by 14.5% to 73,700, an improvement from the 5.9% growth in the same period last year [2] - Average revenue per customer remained stable at 239,000 yuan [2] - Operating costs rose to 77.9 billion yuan, a year-on-year increase of 15.2%, slightly outpacing revenue growth [2] Group 4: Profitability and Cost Management - Gross margin slightly declined from 9.8% to 9.0% due to higher employee compensation and outsourcing costs, which grew by 17.1% and 19.2% respectively [2] - The company anticipates that profit margins will improve as scale effects materialize [2] Group 5: Technological Innovation and International Expansion - JD Logistics' self-developed "Smart Wolf" solution has entered a new phase of nationwide replication, enhancing order processing efficiency [2] - The company has expanded its overseas warehouse coverage to 23 countries and regions, launching the self-operated express brand "JoyExpress" in Saudi Arabia [3] - The overseas business is expected to continue growing as the company leverages its logistics network and integrated supply chain capabilities [3] Group 6: Profit Forecast - The company forecasts net profit attributable to shareholders for 2025-2027 to be 6.85 billion, 7.91 billion, and 8.95 billion yuan respectively, maintaining a "recommended" rating [3]

Investment Rating - The report maintains a "Recommended" rating for JD Logistics [4] Core Views - JD Logistics achieved revenue of 98.532 billion yuan in H1 2025, a year-on-year increase of 14.1%, and a net profit of 2.959 billion yuan, up 15.27% year-on-year [1] - The revenue growth is attributed to strong internal customer revenue growth, with revenue from JD Group increasing by 22.9% to 32.46 billion yuan, while external customer revenue grew by 10.2% to 66.07 billion yuan [1][2] - The number of external integrated supply chain customers increased by 14.5% to 73,700, with average revenue per customer remaining stable at 239,000 yuan [2] - Gross margin slightly decreased from 9.8% to 9.0% due to increased personnel and outsourcing costs, which grew by 17.1% and 19.2% respectively [2] - The company is focusing on technological innovation and overseas expansion, with its overseas warehouses covering 23 countries and regions, and the launch of its self-operated express brand "JoyExpress" in Saudi Arabia [3] Financial Performance Summary - For H1 2025, JD Logistics reported an adjusted net profit of 3.339 billion yuan, a 7.1% increase year-on-year, with Q2 adjusted net profit at 2.588 billion yuan, up 5.4% year-on-year [1][2] - The company forecasts net profits for 2025-2027 to be 6.85 billion, 7.91 billion, and 8.95 billion yuan respectively [3][10] - Revenue projections for 2025-2027 are 203.84 billion, 218.63 billion, and 233.81 billion yuan, with growth rates of 11.49%, 7.26%, and 6.95% respectively [10]

Core Viewpoint - JD Logistics aims to achieve total revenue of 98.5 billion RMB in the first half of 2025, representing a year-on-year growth of 14.1% while maintaining robust profitability through technology empowerment and optimized network layout [1] Revenue and Profitability - In the first half of 2025, JD Logistics reported a non-IFRS profit of 3.3 billion RMB, a year-on-year increase of 7.1% [1] - Integrated supply chain customer revenue reached 50.1 billion RMB, growing by 19.9% year-on-year, with external integrated supply chain customer revenue at 17.6 billion RMB, up 14.7% [1] International Expansion - JD Logistics launched its self-operated express brand "JoyExpress" in Saudi Arabia in June 2025, establishing a comprehensive logistics network from warehousing to last-mile delivery [1] - The company expanded its overseas warehouse network, covering 23 countries and regions by June 30, 2025, as part of its "Global Weaving" plan [2] Technological Innovation - As of June 30, 2025, JD Logistics employed over 4,700 R&D professionals, focusing on automation and AI to enhance logistics efficiency across all operational stages [2] - The company operates over 1,600 warehouses and more than 19,000 delivery stations, employing over 660,000 self-operated staff, including full-time delivery riders [2] Smart Warehousing and Automation - JD Logistics' "Smart Wolf" solution for goods-to-person delivery has been scaled up and deployed in major cities, significantly improving order processing efficiency [3] - The company has deployed hundreds of unmanned vehicles across multiple provinces, enhancing delivery efficiency and reducing operational costs [3] - JD Logistics holds over 5,000 authorized patents, with more than 3,000 related to automation and unmanned technology [3]

Core Insights - JD Logistics reported a total revenue of 98.53 billion yuan for the first half of 2025, representing a year-on-year growth of 14.1% [2] - The integrated supply chain revenue grew by 26.3% in the second quarter, leading the industry [2] - Adjusted net profit for the first half of 2025 reached 3.34 billion yuan, exceeding market expectations [2] Revenue Growth - JD Logistics' integrated supply chain customer revenue was approximately 50.11 billion yuan, with a year-on-year increase of 19.9% [2] - The number of external integrated supply chain customers exceeded 70,000, with an average revenue per customer of 239,000 yuan [2] Industry Collaboration - In the home appliance sector, JD Logistics expanded its collaboration with a well-known brand to include a comprehensive supply chain solution, significantly improving logistics efficiency and reducing damage and complaint rates [3] - The company also enhanced its service offerings in the apparel sector, addressing high return rates and slow inventory turnover through improved logistics solutions [4] Technological Innovation - JD Logistics emphasized technological innovation, integrating smart logistics solutions across all supply chain segments to enhance operational efficiency [5] - The "Smart Wolf" solution for intelligent warehousing has been deployed in multiple key cities, marking a new phase of large-scale application [5] Service Expansion - The "JD Service+" platform has launched various industry-leading solutions in areas such as appliance installation and maintenance, serving over 100 million users nationwide [6] - The company has also begun recruiting full-time delivery personnel to enhance its last-mile delivery capabilities [5]

Core Insights - JD Logistics reported a total revenue of 98.53 billion yuan for the first half of 2025, marking a year-on-year growth of 14.1% [1] - The integrated supply chain revenue grew by 26.3% in the second quarter, leading the industry [1][3] - Adjusted net profit for the first half of 2025 reached 3.34 billion yuan, exceeding market expectations [1] Revenue Growth - JD Logistics' integrated supply chain customer revenue was approximately 50.11 billion yuan in the first half of 2025, reflecting a year-on-year increase of 19.9% [1] - The number of external integrated supply chain customers surpassed 70,000, with an average revenue per customer of 239,000 yuan [1] Industry Collaboration - In the home appliance sector, JD Logistics expanded its collaboration with a well-known brand to include a "delivery and installation" model, significantly improving logistics efficiency and reducing complaint rates [3] - The company also enhanced its service offerings in the apparel sector by providing comprehensive logistics solutions, addressing high return rates and slow inventory turnover [4] Technological Innovation - JD Logistics emphasized technology innovation as a core driver of steady growth, integrating smart technologies across its logistics operations [5][7] - The "Smart Wolf" solution for intelligent warehousing has been deployed in multiple cities, improving order processing efficiency [7] - The company holds over 5,000 authorized patents, with more than 3,000 related to automation and unmanned technologies [8] Service Expansion - JD Logistics reported revenue from express and freight services reaching 48.42 billion yuan in the first half of 2025 [9] - The company launched a comprehensive logistics upgrade for perishable goods, achieving next-morning delivery for lychees during the peak season [9] Employment and Social Responsibility - As of June 30, 2025, JD Logistics employed over 660,000 frontline workers, providing comprehensive benefits and support programs [16] - The company has been recognized for its commitment to employee welfare and community engagement [16][17] International Growth - JD Logistics continued to expand its overseas operations, with new warehouses established in various countries, enhancing its global supply chain network [13] - The company launched its self-operated express brand "JoyExpress" in Saudi Arabia, marking a significant step in localizing its overseas operations [13] Customer Satisfaction - JD Logistics maintained a leading position in customer satisfaction within the express delivery sector, as reported by the State Post Bureau [11]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [3]. Core Insights - The company achieved a revenue of 182.8 billion RMB in 2024, representing a 10% year-on-year growth, with a significant increase in net profit of 906% to 6.2 billion RMB [1][2]. - The growth in revenue is attributed to the national subsidy policy and an increase in sales from JD Retail, with integrated supply chain customer revenue growing by 7.2% [1]. - The company has successfully reduced costs and improved efficiency, leading to a gross profit of 18.7 billion RMB, a 47% increase, and a gross margin improvement of 2.6 percentage points to 10.2% [2]. Financial Performance - In Q4 2024, the company reported a revenue of 52.1 billion RMB, a 10% increase year-on-year, and a net profit of 1.73 billion RMB, up 66% [1]. - The operating costs for 2024 were 164.1 billion RMB, a 6.6% increase, which is lower than the revenue growth rate [2]. - The company expects net profits for 2025, 2026, and 2027 to be 7.1 billion RMB, 8.4 billion RMB, and 9.7 billion RMB respectively [3]. Operational Strategy - The company has upgraded its digital supply chain technology, integrating AI and big data to enhance operational efficiency and reduce costs [3]. - The acquisition of the remaining 36.43% stake in Kuayue Express aims to achieve full control, enhancing resource synergy and operational efficiency [3]. Financial Projections - The projected revenue for 2025 is 193.3 billion RMB, with a growth rate of 5.7% [5]. - The projected net profit for 2025 is 7.1 billion RMB, reflecting a growth rate of 13.9% [5].