Just a few observations from $BABA $JD 1Q23 results:
Both posted similar declines (~3%) in China retail biz. This can be attributed to a slow pickup post-pandemic measures. This is disappointing in the sense that online retail sales in China grew 8.6% in 1Q23. An explanation is weak sales by 3rd party sellers + unpaid orders not yet booked. Important to note that March was better, while Apr/May surge is real. The market seems to have ignored this.
In logistics, JD's rev growth of 35% was nearly double that of Cainiao's 18%. While Cainiao's growth was attributable to growth in international retail biz, JD Logistics' growth also partly attributable to acquisition of $Deppon Logistics(603056.SH$ Deppon Group which accounted for 40% of rev from other customers. Without acquisition, JD Logistics' rev would have grown about 8% YoY. Important to note that Cainiao was able to significantly narrow operating loss margins from -7.9% to -2.3%. JD Logistics operating loss margins expanded due to Deppon acquisition.
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