Broker Name: China Galaxy International Securities (Hong Kong) Co., Limited
Date of Report: May 13, 2026
Excerpt from China Galaxy International Securities report.
Report Summary
- Stock Focus: JD.com Inc (9618 HK)
- Action: Add (Buy call maintained)
- Target Price: HK\$140.0 (raised from HK\$137.0)
- Key Highlights:
- 1Q26 revenue was in line at Rmb315.7bn, driven by resilient general merchandise, marketplace/ad, and logistics service growth.
- 1Q26 non-GAAP net profit beat expectations, despite a 42.2% YoY decline, due to stronger JD Retail margins and reduced losses from new businesses.
- General merchandise revenue maintained double-digit growth for six consecutive quarters.
- Marketplace and ad revenues continued double-digit growth, improving revenue mix.
- Losses from new initiatives (notably food delivery) narrowed significantly QoQ.
- 2Q26F revenue expected to dip 1.6% YoY, but operating margin (OPM) should expand to 1.7% (+1.5 pts YoY).
- Management reiterates long-term high-single-digit OPM target for JD Retail, with 3P order volume now over 50% of total orders.
- International business Joybuy launched in six European countries, with early positive user feedback.
- FY26-28F EPS forecasts raised 1.6-2.3% due to higher profitability.
- Implication: Investors are encouraged to Add JD.com on stronger growth outlook, mix improvement, and ecosystem expansion. Potential re-rating from improved margins and profitability. Risks include weaker China consumption and aggressive overseas expansion affecting margins.
above is an excerpt from a report by China Galaxy International Securities. Clients of China Galaxy International Securities can be the first to access the full report from the China Galaxy International Securities website : https://www.chinastock.com.hk
