02618 Should I Buy

Goldman Sachs issued a positive analyst rating for JD-SW (09618.HK) based on several key factors: 1. Solid Outlook Commentaries: The firm is encouraged by the company's outlook, indicating confidence in future performance. 2. Anticipated Growth Reactivation and Profit Recovery: Goldman Sachs expects a rebound in growth and profitability by 2026, suggesting a recovery trajectory for the company. 3. Performance in 4Q25: Despite a decline in revenue and profit due to a high base effect from a trade-in plan, JD Retail's performance was solid, with notable double-digit growth in the daily necessities business and advertising revenue. 4. Narrowing Losses in Delivery Business: The loss in JD Retail's delivery business has narrowed compared to the previous quarter, indicating improving operational efficiency and a positive trend expected to continue. 5. Positive Outlook for JD LOGISTICS: The logistics segment is expected to perform better than anticipated, contributing to the overall positive sentiment. 6. Steady Profit Growth for JD INDUSTRIALS: The focus on MRO procurement services is expected to maintain steady profit growth in FY2026. Overall, Goldman Sachs views JD-SW as a revaluation story, maintaining a "Buy" rating with a target price of $169, reflecting confidence in the company's future performance and recovery potential.