CLSA Reports JD-SW (09618.HK) Missed Expectations for 4Q25; Anticipates 65% Decline in Adjusted EBIT Due to High Base in 1Q
4Q25 Results Overview: JD-SW's 4Q25 results fell short of expectations, with total revenue increasing by 1.5% YoY to RMB352.3 billion, but adjusted EBIT was lower than anticipated at RMB3.1 billion, compared to a market expectation of a loss of RMB2.9 billion.
Future Projections: CLSA forecasts a 3% YoY revenue increase for 1Q26, but a significant 65% YoY drop in adjusted EBIT to RMB4 billion, indicating challenges ahead due to a high base effect.
Profit Forecast Adjustments: The broker predicts improvements in unit profit for the food delivery segment, but escalating losses in Jingxi and international operations, leading to a 4% reduction in the 2026 adjusted net profit forecast.
Target Price and Rating: CLSA maintains a target price of US$41 for JD.com’s US stock and retains an "Outperform" rating despite the recent performance challenges.
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Daiwa Adjusts JD-SW's Target Price to HKD172; Quarterly Results Meet Expectations
Stock Performance: JD-SW (09618.HK) experienced a decline of 2.439%, with short selling amounting to $288.28 million and a ratio of 30.924%.
4Q25 Results: The company's 4Q25 results met expectations, prompting Daiwa to maintain a Buy rating and slightly increase the target price from HKD171 to HKD172.
Sales Recovery: Following adjustments to the subsidy program, JD-SW saw a quarter-over-quarter rebound in sales of electronics and home appliances in 1Q26.
Future Outlook: JD-SW's guidance for revenue growth and earnings recovery in 2026 is more optimistic than previously anticipated, supported by strong capital returns, including cash dividends and a $3 billion share buyback plan.
HSI Starts 152 Points Up; TENCENT Continues Its Rally; NIO-SW Soars 15%
Market Performance: The HSI opened 0.6% higher at 26,112, with notable gains in tech stocks like TENCENT and BIDU-SW, while some stocks like KNOWLEDGE ATLAS and MINIMAX-WP experienced declines.
Export Growth: China's exports for January-February increased by 21.8%, significantly surpassing the previous value of 6.6% and the forecast of 7.1%.
Tech Stock Movements: Various tech stocks, including BABA-W and KUAISHOU-W, saw increases of 1.3-1.5%, while others like MEITUAN-W and NTES-S faced declines.
Automotive Sector Highlights: NIO-SW surged 15% after reporting a profit, while other automotive stocks like BYD COMPANY and LI AUTO-W showed minor increases.
JD.com Introduces OpenClaw Remote Deployment Service for Windows Users
Stock Performance: JD-SW (09618.HK) saw a rise of 2.844%, with short selling amounting to $304.58M and a ratio of 24.655%.
New Service Launch: The company has introduced an OpenClaw remote deployment service at its flagship 3C digital service store, allowing certified engineers to remotely manage the setup for Windows users in under 30 minutes.
G Sachs Revises Price Targets for JD LOGISTICS and JD INDUSTRIALS to $18.7 and $17
Goldman Sachs Outlook: Goldman Sachs is optimistic about JD-SW's future, predicting growth reactivation and profit recovery by 2026, despite a decline in revenue and profit in 4Q25.
JD Retail Performance: JD Retail's 4Q25 results showed a solid profit performance with a narrowing loss in the delivery business, while daily necessities and advertising revenue experienced double-digit growth.
Target Price Adjustments: Goldman Sachs raised its target price for JD LOGISTICS from $17.4 to $18.7 and lowered JD INDUSTRIALS' target price from $19.6 to $17, maintaining a Buy rating for both.
Overall Market Sentiment: The broker continues to view JD-SW as a revaluation story, keeping its rating and target price at Buy and $169, respectively.
Short Selling Activity Reaches $45.2B, Representing 21% of Total Eligible Securities Turnover at Market Close
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $45.2 billion, accounting for 21% of the eligible securities turnover, an increase from 18.1% on the previous trading day.
Top Short Selling Stocks: The top five stocks with the highest short selling amounts include Tencent, Alibaba, BYD Company, CSOP HS Tech, and JD, with short selling ratios ranging from 18% to 52.3%.
Tencent Performance: Tencent had a short selling turnover of $2.72 billion, with a short selling ratio of 22.5%, reflecting a price increase of 3.39%.
JD-SW Highlights: JD-SW led with the highest short selling ratio at 52.3%, with a turnover of $1.49 billion and a significant price increase of 9.95%.
HSI Rises 435 Points as JD-SW Jumps 10% and JD LOGISTICS Soars 23%
Hong Kong Stock Market Performance: Hong Kong stocks saw significant gains, with the HSI rising 1.7% to 25,757, the HSCEI up 2.1% to 8,628, and the HSTECH increasing 3.2% to 4,947, alongside a total market turnover of $292.766 billion.
JD Series Surge: JD-SW shares surged nearly 10% to $106.6 following positive results, while JD LOGISTICS experienced a remarkable 23% increase, making it the largest gainer among blue chips.
Tech Stocks Rally: Major tech companies like TENCENT, BABA-W, and MEITUAN-W saw their stock prices rise between 3.1% and 5.2%, reflecting a broader positive trend in the tech sector.
BILIBILI-W Decline: Despite reporting a 94% increase in adjusted net profit, BILIBILI-W's stock price fell by 4.5%, contrasting with other companies that experienced gains.
Daiwa Adjusts JD-SW's Target Price to HKD172; Quarterly Results Meet Expectations
Stock Performance: JD-SW (09618.HK) experienced a decline of 2.439%, with short selling amounting to $288.28 million and a ratio of 30.924%.
4Q25 Results: The company's 4Q25 results met expectations, prompting Daiwa to maintain a Buy rating and slightly increase the target price from HKD171 to HKD172.
Sales Recovery: Following adjustments to the subsidy program, JD-SW saw a quarter-over-quarter rebound in sales of electronics and home appliances in 1Q26.
Future Outlook: JD-SW's guidance for revenue growth and earnings recovery in 2026 is more optimistic than previously anticipated, supported by strong capital returns, including cash dividends and a $3 billion share buyback plan.
HSI Starts 152 Points Up; TENCENT Continues Its Rally; NIO-SW Soars 15%
Market Performance: The HSI opened 0.6% higher at 26,112, with notable gains in tech stocks like TENCENT and BIDU-SW, while some stocks like KNOWLEDGE ATLAS and MINIMAX-WP experienced declines.
Export Growth: China's exports for January-February increased by 21.8%, significantly surpassing the previous value of 6.6% and the forecast of 7.1%.
Tech Stock Movements: Various tech stocks, including BABA-W and KUAISHOU-W, saw increases of 1.3-1.5%, while others like MEITUAN-W and NTES-S faced declines.
Automotive Sector Highlights: NIO-SW surged 15% after reporting a profit, while other automotive stocks like BYD COMPANY and LI AUTO-W showed minor increases.
JD.com Introduces OpenClaw Remote Deployment Service for Windows Users
Stock Performance: JD-SW (09618.HK) saw a rise of 2.844%, with short selling amounting to $304.58M and a ratio of 24.655%.
New Service Launch: The company has introduced an OpenClaw remote deployment service at its flagship 3C digital service store, allowing certified engineers to remotely manage the setup for Windows users in under 30 minutes.
G Sachs Revises Price Targets for JD LOGISTICS and JD INDUSTRIALS to $18.7 and $17
Goldman Sachs Outlook: Goldman Sachs is optimistic about JD-SW's future, predicting growth reactivation and profit recovery by 2026, despite a decline in revenue and profit in 4Q25.
JD Retail Performance: JD Retail's 4Q25 results showed a solid profit performance with a narrowing loss in the delivery business, while daily necessities and advertising revenue experienced double-digit growth.
Target Price Adjustments: Goldman Sachs raised its target price for JD LOGISTICS from $17.4 to $18.7 and lowered JD INDUSTRIALS' target price from $19.6 to $17, maintaining a Buy rating for both.
Overall Market Sentiment: The broker continues to view JD-SW as a revaluation story, keeping its rating and target price at Buy and $169, respectively.
Short Selling Activity Reaches $45.2B, Representing 21% of Total Eligible Securities Turnover at Market Close
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $45.2 billion, accounting for 21% of the eligible securities turnover, an increase from 18.1% on the previous trading day.
Top Short Selling Stocks: The top five stocks with the highest short selling amounts include Tencent, Alibaba, BYD Company, CSOP HS Tech, and JD, with short selling ratios ranging from 18% to 52.3%.
Tencent Performance: Tencent had a short selling turnover of $2.72 billion, with a short selling ratio of 22.5%, reflecting a price increase of 3.39%.
JD-SW Highlights: JD-SW led with the highest short selling ratio at 52.3%, with a turnover of $1.49 billion and a significant price increase of 9.95%.
HSI Rises 435 Points as JD-SW Jumps 10% and JD LOGISTICS Soars 23%
Hong Kong Stock Market Performance: Hong Kong stocks saw significant gains, with the HSI rising 1.7% to 25,757, the HSCEI up 2.1% to 8,628, and the HSTECH increasing 3.2% to 4,947, alongside a total market turnover of $292.766 billion.
JD Series Surge: JD-SW shares surged nearly 10% to $106.6 following positive results, while JD LOGISTICS experienced a remarkable 23% increase, making it the largest gainer among blue chips.
Tech Stocks Rally: Major tech companies like TENCENT, BABA-W, and MEITUAN-W saw their stock prices rise between 3.1% and 5.2%, reflecting a broader positive trend in the tech sector.
BILIBILI-W Decline: Despite reporting a 94% increase in adjusted net profit, BILIBILI-W's stock price fell by 4.5%, contrasting with other companies that experienced gains.
