Broker Name: China Galaxy International Securities (CGS International)
Date of Report: March 6, 2026
Excerpt from China Galaxy International Securities report.
- JD.com’s Q4 2025 revenue reached RMB 352bn (+1.5% yoy), with general merchandise and service revenue growth offsetting declines in electronics and home appliances.
- Non-GAAP net profit fell sharply (-90.4% yoy) but was in line with consensus; FY25 profit beat analyst forecasts by 3.7%.
- JD’s food delivery business showed order growth and mix improvement; segment loss narrowed 20% quarter-on-quarter with expectations to narrow further in FY26.
- Home appliances sales declined on a high base, but management expects a return to positive growth in 2H26; overall group revenue is guided to grow in high single digits for FY26.
- Significant increase in R&D (up 66% yoy) driven by AI investments and expansion of JD’s JoyAI model across internal business scenarios; AI investments to ramp up further through FY28.
- European expansion progressing with Joybuy and JoyExpress trial launches in multiple countries; overseas investment expected to weigh on short-term EPS.
- Target price revised slightly lower to HK\$137.0 (from HK\$140.0), reiterating ‘Add’ rating due to expected revenue rebound in 2H26, improved product mix, and ecosystem enhancements.
- Main risks include weak Chinese consumption, high food delivery subsidies, and aggressive international expansion pressuring margins and cash flow.
- JD.com adopted a US\$5bn share repurchase program (Aug 2024–Aug 2027); US\$3bn executed in 2025, cancelling 6.3% of shares outstanding.
- Major shareholders include Tencent (21.3%), Qiangdong Liu (20.0%), and Walmart (10.8%).
Report Summary
- JD.com’s core retail operations show resilience amid margin pressure and strategic investments in AI and international expansion, with management expecting revenue growth to accelerate in the latter half of 2026.
- The company remains committed to narrowing losses in food delivery and leveraging new initiatives, while also returning value to shareholders through buybacks.
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/
