CICC raised JD Logistics's (02618) non-IFRS net profit forecast by 25% to RMB 3,574 billion this year.
The Zhitong Finance App learned that CICC released a research report saying that maintaining the JD Logistics (02618) “outperforming industry” rating, considering that this year's efficiency optimization is expected to exceed expectations, it raised this year's non-IFRS net profit forecast by 25% to RMB 3,574 billion; however, considering that the recovery in demand for foreign orders is still underway, it lowered next year's non-IFRS net profit forecast by 5% to RMB 4.324 billion, with a target price of HK$11.
The bank estimates that JD Logistics's revenue for the first quarter was 40 billion yuan, an increase of 9% over the previous year, mainly due to the increase in the volume of business orders on the JD retail platform; benefiting from continuous efficiency optimization, the adjusted net profit is expected to be 80 million yuan, turning a loss into a profit. For the first time since the disclosure of data for a single quarter, the adjusted net profit margin recorded 0.2%. CICC believes that revenue from the JD Group and third party merchants may continue to grow, and the JD Logistics retail platform business order growth rate in the first quarter is expected to continue the year-on-year upward trend of the previous quarter, and is expected to achieve medium to high unit growth throughout the year.