Bank of China International has reported that JD.com (JD, Financial) exceeded expectations with its third-quarter earnings. The company's revenue grew by 5.1% year-on-year, while net profit saw a 23.9% increase, surpassing both market and Bank of China International forecasts.
Incentive policies encouraging trade-ins have stimulated 3C/electronic appliance consumption, showing signs of recovery since September and likely continuing into the coming months. The bank anticipates that after the Double 11 shopping festival, there will be an expansion of product categories beyond electronic items, contributing to broader consumption.
The report suggests that the government's policies aimed at boosting consumer spending will have a lasting impact, especially as housing sales gradually recover. With sales and profitability revisions for the fiscal years 2024 to 2026, the bank reaffirms its "buy" rating for JD.com, adjusting the target price from $54.4 to $55.2.
