Goldman Sachs: maintain JD buy rating with a target price of HK $447

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Regarding Tencent’s reduction of JD’s shareholding through physical distribution to shareholders, Goldman Sachs issued a report stating that it communicated with JD’s management and quoted JD’s management as saying that this equity change will not have a significant impact on the partnership between the two parties. JD’s management pointed out that the current WeChat level 1 and level 2 entry points account for only a small part of JD’s overall traffic.

As for the fourth-quarter performance forecast, JD’s management revealed that sporadic epidemics in the Mainland, coupled with travel restrictions and supply chain disruption, have continued to pressure the group’s business, but still believe that its performance in the fourth quarter is expected to outperform its peers. Goldman Sachs maintains JD.com's "Buy" rating ("Confirmed Buy" list) with a target price of HK$447.