Jinwu Financial News | According to the China Merchants Securities Research Report, JD Group (09618) released 2024Q1 results, achieving operating revenue of 260 billion yuan, +7.0% year on year, JD retail revenue of 226.8 billion yuan, +6.8% year on year, retail operating profit of 9.3 billion yuan, -5.3% year on year; non-GAAP net profit to mother was 8.9 billion yuan, +17.2% year over year. Q1 revenue was in line with expectations, and profit growth exceeded expectations. Looking at each category, the electric category benefits from the trade-in policy and is expected to continue to gain market share, and Japan will return to healthy growth.
This quarter, JD's business adjustments completed and returned to a healthy growth trend. It is expected that throughout the year, the company will continue to invest in users to seek growth on the basis of maintaining stable profit amounts. Over the long term, it is expected to maintain steady growth under the strong barriers, efficient investment, and release of the operating vitality of 3P merchants in JD's own supply chain.
According to the bank, in 2024, the company is expected to continue to carry out user investment on the basis of maintaining a stable profit amount, and is optimistic about the company's long-term growth elasticity. It expects the 2024-2026 non-GAAP net profit of 368/393/40.7 billion yuan, giving 2024 non-GAAP net profit 12 times PE, corresponding to a target price of HK$150.48 per share. Maintain a highly recommended rating.