Goldman Sachs: JD Group-SW (09618) management expects retail business growth to be positive in the third quarter

The Zhitong Finance App learned that Goldman Sachs released a research report saying that JD Group - SW (09618) management expected that the third quarter of JD retail was driven by the decline in the high base of trade-in subsidies, and that revenue growth was corrected. The comparison base was further relaxed in the fourth quarter, but the average sales price inflation of electronic products may become a demand variable. Goldman Sachs maintains JD's “buy” rating, with a target price of HK$169.

Management said that the tight supply of high-end mobile phones and PC chips is driving up prices. New Apple products are shipped in mid-October, which is one month later than the iPhone 17 shipped in mid-September last year, which may mean that the September base is stronger, but October is expected to benefit. Over the long term, the company continues to aim for double-digit growth through increased market share and market platform/advertising and service revenue. In terms of general commodities, management acknowledged that growth slowed from consecutive double digits to 5.6% in the second quarter, but is still confident that growth will improve from the second quarter level.

Goldman Sachs pointed out that supply chain efficiency, improved product portfolio, and higher profit margin services are expected to support further improvements in gross margin. Operating profit margins are expected to be generally stable, offset by an increase in the R&D expenditure ratio due to the expansion in gross margin. According to management goals, the long-term operating profit margin of JD Retail will reach a high number of units. In terms of takeout, the bank pointed out that orders have been growing steadily in an orderly manner, subsidies have declined, and contract fulfillment efficiency has improved.