Macquarie Research has highlighted that JD.com (JD, Financial) is effectively leveraging the recovering demand for home appliances and electronics with its trade-in policies. This strategic move is expected to bolster JD.com's revenue growth, which is predicted to outpace its peers in the second half of the year.
The research firm forecasts a 5% year-over-year increase in JD.com's third-quarter revenue, amounting to 260 billion yuan. Adjusted net profit is anticipated to reach 11.5 billion yuan, aligning with the higher end of market expectations. Macquarie reaffirms JD.com as their top choice in the e-commerce sector and has revised its earnings forecast upward by 2% for this year and 6% for next year, indicating sustainable profit expansion.
Additionally, the company is projected to achieve an adjusted operating profit of 12 billion yuan in the third quarter, exceeding market expectations by 8%. This is attributed to JD.com's cautious investment strategy and the continued contribution from divisions such as JD Logistics, which are enhancing the group's overall profitability. As a result, Macquarie has raised JD.com's target price by 3% to 232 Hong Kong dollars and reiterated its "outperform" rating.
