Key Takeaways Sea Limited posted 38.3% revenue growth in Q3 but missed earnings expectations.Shopee, Monee and Garena each delivered strong year-over-year gains across key metrics.Competitive pressure in Southeast Asia and Latin America adds challenges to SE's outlook.Sea Limited’s (SE) latest results highlight why investors should hold the stock despite its third-quarter earnings miss. The company delivered strong top-line expansion, with revenues rising 38.3% year over year, driven by sustained Gross Merc ...

Core Insights - JD.com reported a total revenue increase of 14.9% year-on-year for Q3 2025, reaching RMB 299.1 billion (US$ 42.0 billion) [19][7] - The company achieved a new milestone of over 700 million annual active customers as of October 2025, indicating strong growth in user base and shopping frequency [3] - JD Retail revenues grew by 11.4% year-on-year, with significant contributions from general merchandise and advertising services [19][7] Financial Performance - Net income attributable to ordinary shareholders was RMB 5.3 billion (US$ 0.7 billion) for Q3 2025, down from RMB 11.7 billion in Q3 2024 [28] - Non-GAAP net income attributable to ordinary shareholders was RMB 5.8 billion (US$ 0.8 billion) for Q3 2025, compared to RMB 13.2 billion for the same period last year [28] - Diluted net income per ADS decreased to RMB 3.39 (US$ 0.48) from RMB 7.73 in Q3 2024 [29] Business Segments - JD Retail reported net revenues of RMB 250.6 billion (US$ 35.2 billion) for Q3 2025, with an operating margin of 5.9%, up from 5.2% in Q3 2024 [26][7] - JD Logistics saw a revenue increase of 24.1% year-on-year, reaching RMB 55.1 billion (US$ 7.7 billion) [36] - New Businesses segment revenues surged by 213.7% year-on-year to RMB 15.6 billion (US$ 2.2 billion) [36] Share Repurchase Program - The company repurchased approximately 80.9 million Class A ordinary shares for about US$ 1.5 billion during the first nine months of 2025, with a remaining authorization of US$ 3.5 billion under the share repurchase program [4][5] Strategic Initiatives - JD Supermarket announced five strategic initiatives to expand its user base over the next three years, focusing on product differentiation and operational efficiency [8] - The launch of the "JD FASHION" label aims to enhance consumer trust in apparel quality [9] - JD Health entered into strategic partnerships with leading pharmaceutical companies to expand its online marketplace for new and specialty medicines [13][14] Cash Flow and Working Capital - As of September 30, 2025, the company's cash and cash equivalents totaled RMB 210.5 billion (US$ 29.6 billion), down from RMB 241.4 billion at the end of 2024 [30] - Free cash flow for Q3 2025 was negative RMB 11.2 billion (US$ 1.6 billion), reflecting increased capital expenditures and operational cash flow challenges [31]

Core Thesis - JD.com, Inc. is viewed positively due to its strong fundamentals, low valuation, and strategic growth opportunities, despite recent operating losses from heavy investments in food delivery [1][4][6] Company Overview - JD.com, Inc. is the largest technology-driven e-commerce retailer in China, headquartered in Beijing, and is part of the NASDAQ-100 and Fortune Global 500 [2] - The company's mission focuses on enhancing customer experience and operational efficiency through advanced technology and a robust supply chain [2] Business Segments - JD Retail operates a direct-sales online platform covering various product categories, ensuring quality control and inventory management [2] - JD Logistics offers an efficient network of warehouses and delivery personnel across China, generating external service revenue and maintaining high profitability [3] - The company has expanded into high-growth areas such as JD Health and industrial supply chain solutions, and is entering the competitive food delivery market [3] Financial Performance - JD.com has faced recent operating losses due to increased SG&A expenses from food delivery investments, but these are expected to decline [4] - The company is trading at historically low valuations, with a P/E ratio of 10.03 and an EV/EBITDA of approximately 7x, indicating potential upside [4][5] - JD maintains a strong balance sheet with $29.85 billion in cash against $14.07 billion in debt, and is executing a $5 billion buyback program with a 2.87% dividend yield [5] Management and Strategy - The management team includes founder Richard Qiangdong Liu and CEO Sandy Ran Xu, who has significant financial expertise [5] - The company is focused on revenue and EBIT growth, with a low volatility (Beta 0.4) and medium-term technical upside projected towards $45 [5] Market Position and Risks - JD.com faces intense competition from Alibaba and Pinduoduo, along with expansion costs and geopolitical/regulatory uncertainties [4] - Despite a ~14% stock depreciation since March 2025, the bullish thesis remains intact due to JD's strong fundamentals and undervaluation [6]

Core Insights - JD.com and Sea Limited have established themselves as leading global digital commerce platforms, each developing a comprehensive ecosystem that extends beyond retail [2] - Both companies are heavily investing in technology, supply chain innovation, and ecosystem synergies to drive sustainable growth [2] JD.com Overview - JD.com is recognized as one of China's most trusted e-commerce platforms, with a robust ecosystem that includes online retail, logistics, and fintech [4] - The company is expanding into new categories such as groceries, healthcare, and third-party marketplace services, enhancing customer experience and operational efficiency [4] - The Zacks Consensus Estimate for JD's Q3 2025 total revenues is $41.21 billion, reflecting an 11.06% year-over-year growth, while EPS is estimated at 44 cents, indicating a 64.52% year-over-year decline due to reinvestment strategies [5] - JD's disciplined execution and technology-driven fulfillment network position it well for sustainable recovery despite near-term profitability constraints [6] Sea Limited Overview - Sea Limited is solidifying its position as a leading digital ecosystem in Southeast Asia and Latin America, driven by its three main segments: e-commerce (Shopee), digital financial services (SeaMoney), and digital entertainment (Garena) [7] - Shopee is the primary growth driver, with increased order frequency and improved logistics efficiency, while SeaMoney is expanding rapidly through various financial services [8] - The Zacks Consensus Estimate for Sea Limited's Q3 2025 revenues is $5.84 billion, indicating a 36.81% year-over-year growth, with EPS projected at $1.11, reflecting a 105.56% year-over-year increase [10] - Sea Limited's disciplined execution and scalable business model support healthy growth and improving profitability across its core markets [11] Performance Comparison - Year-to-date, Sea Limited shares have increased by 53.3%, while JD.com shares have declined by 5.5%, indicating differing market responses to their growth strategies [12] - On a forward 12-month basis, Sea Limited trades at 29.03X earnings compared to JD.com's 9.62X, reflecting investor confidence in Sea's profitability and growth trajectory [14] - Sea Limited's higher valuation is justified by its accelerating growth and clearer earnings visibility, contrasting with JD's slower recovery pace [14] Conclusion - Both JD.com and Sea Limited are executing effectively within their markets, but their growth trajectories differ significantly [18] - JD's strong logistics infrastructure and disciplined expansion support its long-term potential, while Sea Limited demonstrates sharper earnings momentum and improved cost control [18] - Sea Limited's diversified regional footprint and stronger profitability trend currently give it an edge over JD.com [18]

Core Insights - JD.com reported a robust 22.4% year-on-year revenue growth for Q2 2025, reaching RMB 356.7 billion (US$ 49.8 billion) [10][16] - The company's core JD Retail business achieved a 20.6% year-on-year revenue growth, with an operating margin of 4.5%, marking a historic high [3][23] - JD Food Delivery showed significant growth, with daily order volume exceeding 25 million during the JD 618 Grand Promotion [14] Financial Performance - Net income attributable to ordinary shareholders for Q2 2025 was RMB 6.2 billion (US$ 0.9 billion), down from RMB 12.6 billion in Q2 2024 [10][25] - Non-GAAP net income attributable to ordinary shareholders was RMB 7.4 billion (US$ 1.0 billion) for Q2 2025, compared to RMB 14.5 billion for Q2 2024 [10][25] - Diluted net income per ADS was RMB 4.15 (US$ 0.58) for Q2 2025, a decrease from RMB 8.19 in Q2 2024 [10][26] Business Segments - JD Retail generated net revenues of RMB 310.1 billion (US$ 43.3 billion) in Q2 2025, with an income from operations of RMB 13.9 billion (US$ 1.9 billion) [10][23] - JD Logistics reported net revenues of RMB 51.6 billion (US$ 7.2 billion) for Q2 2025, reflecting a 16.6% year-on-year increase [32] - New Businesses, including JD Food Delivery, saw a remarkable 198.8% year-on-year revenue growth in Q2 2025 [32] Cost and Expenses - Cost of revenues increased by 22.2% to RMB 300.0 billion (US$ 41.9 billion) for Q2 2025 [17] - Fulfillment expenses rose by 28.6% to RMB 22.1 billion (US$ 3.1 billion) for Q2 2025, representing 6.2% of net revenues [18] - Marketing expenses surged by 127.6% to RMB 27.0 billion (US$ 3.8 billion) for Q2 2025, accounting for 7.6% of net revenues [19] Share Repurchase Program - The company repurchased approximately 80.7 million Class A ordinary shares for about US$ 1.5 billion during the first half of 2025 [4][5] - As of the announcement date, the remaining amount under the share repurchase program was US$ 3.5 billion [4] Strategic Initiatives - JD.com launched the "One Step Ahead – Accelerated Upgrade Program" for 3C electronics to enhance user experience and drive sales [7] - JD Logistics expanded its global warehousing capabilities, opening new warehouses in multiple countries, including the US and UK [11] - JD Health strengthened its position as an online marketplace for new and specialty medicine launches in China [13]

Core Insights - JD Logistics, the supply chain arm of JD.com, achieved 11% year-over-year revenue growth in Q1 2025, contributing 16.2% to JD's total revenues [1][9] - The company is heavily investing in automation across various logistics functions, which is aimed at long-term scalability despite short-term profitability pressures [1][9] - JD Property has launched its first overseas logistics asset in Dubai, indicating a strategic move to enhance global trade and support international growth [2] Competitive Landscape - JD Logistics faces competition from Alibaba's Cainiao and Amazon Global Logistics in the international logistics sector [3][4] - Cainiao, established in 2013, has developed a smart global logistics network with comprehensive capabilities, catering to both global brands entering China and Chinese companies selling abroad [3] - Amazon Global Logistics offers a door-to-door shipping service that integrates with Amazon's supply chain, providing competitive shipping rates [4] Financial Performance and Valuation - JD's stock has declined by 24.1% over the past three months, contrasting with a 2.5% growth in the Zacks Internet - Commerce industry [7] - The company trades at a forward 12-month P/E ratio of 8.01X, significantly lower than the industry average of 23.95X, indicating potential undervaluation [10] - The Zacks Consensus Estimate for JD's 2025 earnings is $3.81 per share, reflecting a downward revision of 16.9% over the past month, suggesting a year-over-year decline of 10.56% [11]

Core Insights - Alibaba Group (BABA) and JD.com (JD) are major players in China's e-commerce sector, each contributing significantly to the digital economy [1][2] - Investors are closely monitoring which platform will deliver stronger and more sustainable growth as China's economy stabilizes [2] Alibaba Group (BABA) - BABA reported revenues of $32.81 billion in Q4 fiscal 2025, marking a year-over-year increase of 6.96% [3] - The company has expanded its loyalty program, 88VIP, to over 50 million members, enhancing user retention [4] - International commerce segment revenues grew by 22% year-over-year, aided by localized supply chains and improved unit economics [5] - Alibaba Cloud revenues increased by 18%, with AI product revenues experiencing triple-digit growth for seven consecutive quarters [6] - A RMB 10 billion investment in instant commerce initiatives has shown promising early results in user engagement [7] JD.com (JD) - JD reported revenues of $41.79 billion in Q1 2025, reflecting a year-over-year growth of 16.01% [8] - The company has seen a 20% year-over-year increase in active customers, driven by enhanced shopping frequency and personalized services [9] - JD's 3P marketplace has expanded, resulting in a 16% year-over-year growth in marketing and marketplace revenues [10] - The food delivery segment is growing, with nearly 20 million daily orders and a strategy of onboarding merchants at zero commission [11] - JD Logistics contributed to an 11% revenue growth, with gross profit rising by 20% and non-GAAP net income increasing by 43% year-over-year [12] Price Performance and Valuation - Year-to-date, BABA shares have increased by 42.4%, while JD shares have decreased by 3.8% [13] - BABA's forward 12-month P/E ratio is 11.13X, compared to JD's 7.63X, indicating higher investor confidence in BABA's growth potential [16] - The Zacks Consensus Estimate for BABA's Q1 fiscal 2026 earnings is $2.48 per share, a 9.73% year-over-year increase, while JD's Q2 2025 earnings estimate indicates a 24.81% decline [20][21] Conclusion - BABA is positioned as a more attractive investment option due to its strong momentum in cloud, AI, and international e-commerce, alongside a balanced business model [22] - JD is facing challenges in profitability due to aggressive investments and losses in new business segments [22]

Core Insights - JD.com reported strong financial results for Q1 2025, with net revenues of RMB 301.1 billion (US$ 41.5 billion), representing a year-on-year increase of 15.8% [7][18] - The company experienced double-digit growth in both product and service revenues, driven by improved consumer sentiment and enhanced supply chain capabilities [3][7] - JD.com is committed to shareholder returns, completing an annual dividend payout and continuing its share repurchase program [3][4] Financial Performance - Net income attributable to ordinary shareholders increased by 52.7% to RMB 10.9 billion (US$ 1.5 billion) compared to Q1 2024 [27] - Non-GAAP net income attributable to ordinary shareholders rose by 43.4% to RMB 12.8 billion (US$ 1.8 billion) [27] - Diluted net income per ADS increased by 58.7% to RMB 7.19 (US$ 0.99) [28] Revenue Breakdown - JD Retail generated net revenues of RMB 263.8 billion (US$ 36.4 billion), a 16.3% increase year-on-year [34] - JD Logistics reported net revenues of RMB 46.9 billion (US$ 6.5 billion), an 11.5% increase [34] - New Businesses segment revenues grew by 18.1% to RMB 5.8 billion (US$ 793 million) [34] Cost and Expenses - Cost of revenues increased to RMB 253.2 billion (US$ 34.9 billion), up 15.0% from Q1 2024 [19] - Fulfillment expenses rose by 17.4% to RMB 19.7 billion (US$ 2.7 billion) [20] - Marketing expenses increased by 13.9% to RMB 10.5 billion (US$ 1.5 billion) [21] Strategic Initiatives - JD.com launched a food delivery business in February 2025, expanding its service offerings [11] - The company initiated an export-to-domestic sales program, aiming to procure RMB 200 billion worth of export-oriented goods for domestic sales [10] - JD Health strengthened its position in the online marketplace for new medicines, launching innovative products from major pharmaceutical companies [12][13] Share Repurchase Program - As part of its share repurchase program, JD.com repurchased approximately 80.7 million Class A ordinary shares for about US$ 1.5 billion from January 1, 2025, leaving US$ 3.5 billion remaining under the program [4][5] Cash Flow and Working Capital - As of March 31, 2025, JD.com had cash and cash equivalents totaling RMB 203.4 billion (US$ 28.0 billion) [29] - Free cash flow for Q1 2025 was RMB (21.6 billion) (US$ 2.98 billion), reflecting increased cash used in operating activities [29][31]

Core Insights - China's e-commerce landscape is rapidly evolving, with PDD Holdings and JD.com as dominant players, each with distinct business models [1][2] - Recent financial results from both companies indicate potential investment opportunities as China's economy stabilizes and consumer confidence improves [2] PDD Holdings - PDD Holdings reported a 24% year-over-year revenue growth in Q4 2024, reaching RMB 110.6 billion ($15.15 billion), and a full-year growth of 59% [4] - Transaction services revenues surged by 33% in Q4, showcasing strong monetization capabilities [4] - Non-GAAP operating profit increased by 14% to RMB 28 billion, with non-GAAP net income at RMB 29.9 billion [4] - Operating margin compressed to 24% in Q4 2024 from 28% in the previous year due to significant ecosystem investments [5] - Global expansion through Temu faces challenges, including increased competition and regulatory scrutiny, particularly in the U.S. [6] - Consensus earnings estimate for 2025 is $11.99 per share, reflecting a 5.92% growth from 2024, but has decreased by 1.8% over the past 30 days [7] JD.com - JD.com achieved a 13.4% year-over-year revenue growth in Q4 2024, totaling RMB 347 billion ($47.5 billion), with full-year revenues at RMB 1.16 trillion, up 6.8% [8][9] - JD Retail revenues grew by 14.7% in Q4, with electronics and home appliances increasing by 15.8% [9] - Operating margin for JD Retail improved to 3.3% in Q4 and 4.0% for the full year, with non-GAAP net income rising 36% year-over-year to RMB 47.8 billion [10] - JD's logistics capabilities and strategic expansion into on-demand retail enhance user engagement and create competitive advantages [11] - The company offers shareholder returns through a $1.0 annual dividend per ADS and a $5 billion share repurchase program [12] - Consensus earnings estimate for 2025 is $4.76 per share, indicating an 11.74% year-over-year growth [12] Price Performance and Valuation - PDD shares have declined by 3.2% over the past year, underperforming the Zacks Retail-Wholesale sector's growth of 16.2%, while JD shares have returned 52.8% [13][14] - JD trades at a forward P/E of 8.24x, significantly below the industry average of 19.25x, indicating it is undervalued [16] - PDD's forward P/E is 9.17x, reflecting market concerns about its growth strategy and potential volatility in revenue and profit performance [17] Investment Outlook - JD.com is positioned as the superior investment choice due to consistent margin expansion, strategic logistics investments, and diversified growth drivers [20] - JD's valuation discount and tangible shareholder returns create a compelling risk-reward profile, especially as China's consumption recovery gains momentum [20] - JD currently holds a Zacks Rank 1 (Strong Buy), while PDD has a Zacks Rank 3 (Hold) [21]

Core Viewpoint - JD.com has emerged as a compelling investment opportunity for 2025, with a stock surge of 52.8% over the past year, significantly outperforming the industry and major indices [1][2]. Financial Performance - JD.com reported fourth-quarter net revenues of RMB347.0 billion ($47.5 billion), a 13.4% year-over-year increase, and a non-GAAP net income of RMB11.3 billion ($1.5 billion), reflecting a 34% increase [4]. - The full-year non-GAAP net margin reached 4.1%, with steady margin expansion over 11 consecutive quarters, indicating consistent operational execution [5]. - The Zacks Consensus Estimate for 2025 revenues is $173.05 billion, suggesting a 7.65% year-over-year growth, while earnings estimates indicate an 11.74% growth [6]. Valuation Perspective - JD.com is trading at a forward 12-month P/E of 8.58X, compared to the industry average of 22.25X, reflecting concerns about China's economic growth and regulatory environment [8][14]. Strategic Expansion - JD.com is expanding beyond its traditional retail business into high-growth sectors, including logistics and supply chain management [9]. - The company has opened its third warehouse in Poland, enhancing its European presence and plans to double its overseas warehouse capacity by 2025 [10]. - JD Health is making strides in specialized markets, assisting over 23,000 individuals with rare diseases and offering innovative services [11]. Technology Leadership - JD.com is focusing on technological innovation, deploying AI and automation to enhance customer experience and supply chain efficiency [15]. - The company has established dedicated departments for emerging fields like embodied intelligence and has launched instant tire delivery services in the automotive sector [17]. Investment Outlook - JD.com’s strong financial performance, strategic diversification, and technology leadership create a compelling investment case, supported by a 32% increase in annual dividend to $1.0 per ADS and a $5 billion share repurchase program [18]. - The company is well-positioned to continue outperforming in 2025, with a significant valuation discount compared to industry peers providing potential upside [19]. - JD.com represents an attractive opportunity for investors seeking exposure to China's digital economy, driven by disciplined financial management and innovation [20].