Broker Name: China Galaxy International (CGSI)
Date of Report: October 14, 2025
Excerpt from China Galaxy International (CGSI) report.
Report Summary
- JD.com’s 3Q25 food delivery business loss likely narrowed quarter-over-quarter due to improving unit economics and increased order volume. Management targets breakeven by 2027 and profitability in the longer term, focusing on fulfillment efficiency and subsidy optimization.
- Retail sales, especially general merchandise, saw robust growth, though electronics growth slowed due to a high base effect. Operating profit margin expanded, and the Double 11 Shopping Festival is expected to boost cross-selling and delivery business.
- Losses from new initiatives (JD Jingxi and international expansion) widened, with significant investments in lower-tier market platforms and the pending acquisition of Ceconomy in Germany.
- FY25-27 EPS estimates were raised on lower food delivery loss assumptions, increasing the DCF-based target price to HK\$157. The broker reiterates an Add rating on JD.com, citing strong revenue growth prospects but highlighting risks like weaker consumption, high subsidies, and overseas expansion costs.
- Key financials: FY25 revenue forecast at Rmb1,329,930m, net profit at Rmb28,981m, and a core EPS of Rmb9.42. JD.com’s market cap is approximately US\$47.2bn, with major shareholders including Tencent, Qiangdong Liu, and Walmart.
Above is an excerpt from a report by China Galaxy International (CGSI). Clients of China Galaxy International (CGSI) can be the first to access the full report from the China Galaxy International website: https://www.chinastock.com.hk
