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<Research>G Sachs Reinstates JD.com (JD.US) at Buy, as Revenue Growth Recovers
Recommend 15 Positive 18 Negative 6 |
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Goldman Sachs reinstated JD-SW (09618.HK) (JD.US) at Buy in a recent report, citing positiveness about the re-acceleration of its revenue growth. After going through the business structure and strategic adjustments from 4Q22 to 4Q23, the broker believed that this year would be a year of normalisation for the company's business, with growth expected to accelerate again. The broker noted that JD's share price crumpled about 50% cumulatively last year, but believed that growth visibility would continue to improve, as growth in the platform's key categories and general merchandise returned to the right track from 1Q24. The broker remained confident that the group could achieve a higher growth rate than the national retail market for whole-year 2024, in turn driving a valuation recovery. Goldman also pointed out that the group's policy of enhancing shareholders' returns, such as its buyback programme, would provide downside protection. The company's current price is around 8.8x projected 2024 P/E, which is an attractive risk-reward ratio. The broker gave JD H-share and US-share target prices of HK$145 and US$37 respectively. Goldman currently forecasted JD's overall and retail revenue to both grow by 6% in 1Q24, with an adjusted net profit of RMB7.2 billion. AAStocks Financial News |
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