Michael Burry Acquired Call Options on BABA-W/ JD-SW Last Qtr
Michael Burry's Investment Moves: Hedge fund manager Michael Burry, known for his role in "The Big Short," has acquired call options on Alibaba (BABA-W) and other companies while also engaging in short selling of various stocks including JD-SW and ASML through Scion Asset Management.
Previous Short Selling Activity: In the first quarter of 2025, Scion Asset Management had previously shorted several Chinese ADRs, including Alibaba and Pinduoduo, prior to significant tariff announcements by former President Donald Trump.
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BofAS Lowers JD-SW's Target Price to HKD141, Anticipates Reduced Losses in New Business for Last Quarter
BofA Securities Report: BofA Securities estimates JD-SW's 4Q25 revenue to rise by 2.6% YoY to RMB356 billion, aligning with market expectations despite a 3.1% YoY decline in direct sales due to a drop in home appliances and electronics.
New Business Losses: JD-SW's new business losses are projected to reach RMB14.9 billion, slightly lower than the previous quarter, with improvements in the food delivery sector offset by increased investments in Jingxi and overseas operations.
Rating and Target Price Adjustment: BofA Securities maintains a Buy rating on JD-SW but has reduced its target price from HKD149 to HKD141.
Market Activity: The stock is experiencing significant short selling, with a ratio of 30.96% and a total short selling amount of $363.92 million.
JD-SW 7Fresh Kitchen Officially Recognized as Beijing's First Online Exclusive Meal Assistance Service for the Elderly
Elderly Meal Assistance Launch: JD-SW's 7Fresh Kitchen has become the first officially recognized provider in Beijing for online exclusive elderly meal assistance, introducing a 'senior section' in some stores for healthier dining options.
Innovative Service Model: In Beijing's Doncheng District, a full-chain elderly meal assistance service has been created using 7Fresh Kitchen, featuring online ordering, offline delivery, and financial payment, establishing a 15-minute service circle for the elderly.
Expansion Plans: 7Fresh Kitchen plans to gradually extend its elderly meal assistance services to all of its stores, enhancing accessibility for senior citizens.
Market Performance: JD-SW's stock has seen a short selling of $569.99M with a ratio of 37.243%, while CLSA has lowered JD.com's 2025/2026 adjusted net profit forecasts but maintains an outperform rating.
HSI Initially Gains 350 Points, Then Drops Over 200 Points as Major Tech Stocks Weigh on Market; KUAISHOU, BIDU, and TENCENT Decline by 5-6%
Market Opening: Hong Kong stocks opened higher on the 3rd, initially gaining 350 points before closing down 203 points at 26,571, with a turnover of $111.427 billion.
Tech Sector Decline: Major technology stocks, including KUAISHOU-W, BIDU-SW, TENCENT, and BABA-W, experienced significant losses, contributing to the overall market downturn.
Short Selling Activity: High short selling ratios were noted for several stocks, with KUAISHOU-W and BIDU-SW showing particularly high short selling amounts of $476.78 million and $952.19 million, respectively.
Individual Stock Performance: KUAISHOU-W was the biggest loser among blue chips, down 6.36%, while TENCENT and BABA-W also saw declines of 5.1% and 4.1%, respectively.
JD-SW and CBBC Establish Strategic Alliance; Joybuy Set to Debut in the UK in March
Strategic Cooperation Agreement: JD-SW has signed a strategic cooperation agreement with the China-Britain Business Council (CBBC) to enhance collaboration with UK brands and provide insights into the China market.
Launch of Joybuy in the UK: JD-SW's European online retail platform, Joybuy, is set to officially launch in the UK in March 2026, having already achieved same-day and next-day delivery during its trial period.
CLSA Reduces JD.com (JD.US) 2025/2026 Adjusted Net Profit Projections, Maintains Outperform Rating
Impact on JD-SW: CLSA forecasts that JD-SW may face significant challenges due to reduced trade-in subsidies and heightened competition in the Chinese market.
Revenue and Profit Projections: The broker estimates a modest revenue growth of 1.7% for 4Q25, projecting total revenue of approximately RMB352.8 billion, while expecting a drastic 96% YoY decline in adjusted net profit to RMB481 million.
Revised Profit Forecasts: CLSA has lowered its adjusted net profit forecasts for JD-SW by 6% for 2025 and 5% for 2026, indicating ongoing operational difficulties expected to continue into the first half of 2026.
Rating Status: Despite the challenges, CLSA maintains an "Outperform" rating for JD.com (JD.US) while BofAS has also adjusted JD-SW's target price to HKD141, anticipating in-line results for 4QFY25.
BofAS Reduces JD-SW's Target Price to HKD141, Anticipates Consistent Performance for 4QFY25
BofA Securities Report: BofA Securities predicts JD-SW will announce its 4QFY25 results in March, with total revenue expected to grow by 2.6% YoY to RMB356 billion, aligning with market consensus.
Sales Performance: The report anticipates a 3.1% YoY decline in direct sales revenue, primarily due to a 13% drop in home appliances and electronics sales, although this will be partially offset by strong growth in general merchandise.
Target Price Adjustment: BofA has reduced JD-SW's target price from HKD149 to HKD141 but maintains a "Buy" rating, citing the company's strong retail position and attractive earnings forecast.
Shareholder Returns: The firm highlights JD-SW's commitment to shareholder returns, projecting a nearly 10% dividend yield in 2025.
BofAS Lowers JD-SW's Target Price to HKD141, Anticipates Reduced Losses in New Business for Last Quarter
BofA Securities Report: BofA Securities estimates JD-SW's 4Q25 revenue to rise by 2.6% YoY to RMB356 billion, aligning with market expectations despite a 3.1% YoY decline in direct sales due to a drop in home appliances and electronics.
New Business Losses: JD-SW's new business losses are projected to reach RMB14.9 billion, slightly lower than the previous quarter, with improvements in the food delivery sector offset by increased investments in Jingxi and overseas operations.
Rating and Target Price Adjustment: BofA Securities maintains a Buy rating on JD-SW but has reduced its target price from HKD149 to HKD141.
Market Activity: The stock is experiencing significant short selling, with a ratio of 30.96% and a total short selling amount of $363.92 million.
JD-SW 7Fresh Kitchen Officially Recognized as Beijing's First Online Exclusive Meal Assistance Service for the Elderly
Elderly Meal Assistance Launch: JD-SW's 7Fresh Kitchen has become the first officially recognized provider in Beijing for online exclusive elderly meal assistance, introducing a 'senior section' in some stores for healthier dining options.
Innovative Service Model: In Beijing's Doncheng District, a full-chain elderly meal assistance service has been created using 7Fresh Kitchen, featuring online ordering, offline delivery, and financial payment, establishing a 15-minute service circle for the elderly.
Expansion Plans: 7Fresh Kitchen plans to gradually extend its elderly meal assistance services to all of its stores, enhancing accessibility for senior citizens.
Market Performance: JD-SW's stock has seen a short selling of $569.99M with a ratio of 37.243%, while CLSA has lowered JD.com's 2025/2026 adjusted net profit forecasts but maintains an outperform rating.
HSI Initially Gains 350 Points, Then Drops Over 200 Points as Major Tech Stocks Weigh on Market; KUAISHOU, BIDU, and TENCENT Decline by 5-6%
Market Opening: Hong Kong stocks opened higher on the 3rd, initially gaining 350 points before closing down 203 points at 26,571, with a turnover of $111.427 billion.
Tech Sector Decline: Major technology stocks, including KUAISHOU-W, BIDU-SW, TENCENT, and BABA-W, experienced significant losses, contributing to the overall market downturn.
Short Selling Activity: High short selling ratios were noted for several stocks, with KUAISHOU-W and BIDU-SW showing particularly high short selling amounts of $476.78 million and $952.19 million, respectively.
Individual Stock Performance: KUAISHOU-W was the biggest loser among blue chips, down 6.36%, while TENCENT and BABA-W also saw declines of 5.1% and 4.1%, respectively.
JD-SW and CBBC Establish Strategic Alliance; Joybuy Set to Debut in the UK in March
Strategic Cooperation Agreement: JD-SW has signed a strategic cooperation agreement with the China-Britain Business Council (CBBC) to enhance collaboration with UK brands and provide insights into the China market.
Launch of Joybuy in the UK: JD-SW's European online retail platform, Joybuy, is set to officially launch in the UK in March 2026, having already achieved same-day and next-day delivery during its trial period.
CLSA Reduces JD.com (JD.US) 2025/2026 Adjusted Net Profit Projections, Maintains Outperform Rating
Impact on JD-SW: CLSA forecasts that JD-SW may face significant challenges due to reduced trade-in subsidies and heightened competition in the Chinese market.
Revenue and Profit Projections: The broker estimates a modest revenue growth of 1.7% for 4Q25, projecting total revenue of approximately RMB352.8 billion, while expecting a drastic 96% YoY decline in adjusted net profit to RMB481 million.
Revised Profit Forecasts: CLSA has lowered its adjusted net profit forecasts for JD-SW by 6% for 2025 and 5% for 2026, indicating ongoing operational difficulties expected to continue into the first half of 2026.
Rating Status: Despite the challenges, CLSA maintains an "Outperform" rating for JD.com (JD.US) while BofAS has also adjusted JD-SW's target price to HKD141, anticipating in-line results for 4QFY25.
BofAS Reduces JD-SW's Target Price to HKD141, Anticipates Consistent Performance for 4QFY25
BofA Securities Report: BofA Securities predicts JD-SW will announce its 4QFY25 results in March, with total revenue expected to grow by 2.6% YoY to RMB356 billion, aligning with market consensus.
Sales Performance: The report anticipates a 3.1% YoY decline in direct sales revenue, primarily due to a 13% drop in home appliances and electronics sales, although this will be partially offset by strong growth in general merchandise.
Target Price Adjustment: BofA has reduced JD-SW's target price from HKD149 to HKD141 but maintains a "Buy" rating, citing the company's strong retail position and attractive earnings forecast.
Shareholder Returns: The firm highlights JD-SW's commitment to shareholder returns, projecting a nearly 10% dividend yield in 2025.
