Citigroup released a report highlighting JD.com’s impressive third-quarter results, with net profit increasing by 24% year-on-year to 13.2 billion RMB. The report credits the company's robust supply chain and the ability to adapt quickly as key factors behind meeting increased demand from appliance trade-ins.
Increased demand was observed in September, which further strengthened during the Singles' Day shopping event. This positive momentum is believed to extend beyond just appliance demand, potentially fostering job creation and boosting consumer confidence. JD.com's management holds a cautiously optimistic outlook for the upcoming year, anticipating solid new user growth and enhanced user experience to drive resilient demand.
Citigroup maintains a "Buy" rating for JD.com (JD, Financial), setting the American Depositary Receipt (ADR) target price at $51. The report views the recent stock price weakness, attributed to profit-taking, as a buying opportunity based on reasonable valuation and stable management execution.
