07618 Overview

Revenue Growth: JD INDUSTRIALS reported a 17.4% year-over-year revenue increase to RMB24 billion, aligning with expectations from CLSA's research.

Gross Margin Improvement: The company's gross margin expanded by 1.2 percentage points to 17.4%, driven by direct upstream procurement and improved economies of scale.

Net Profit Margin: The net profit margin, according to International Financial Reporting Standards, was recorded at 4.7%.

Target Price and Rating: CLSA maintained its target price for JD INDUSTRIALS at HKD21 and reiterated an Outperform rating.

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.

Stock Performance: JD INDUSTRIALS (07618.HK) saw a share price increase of 2.092% following a positive market reaction to its earnings announcement.

Broker Analysis: UBS remains optimistic about the company's 2026 outlook, expecting revenue growth and profit margin expansion, but has lowered its target price by 3% to $22.8.

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.

Market Overview: The HSI opened slightly higher at 25,358, with the HSCEI and HSTECH also showing modest gains, reflecting a positive start in the Hong Kong stock market.

JD Group Performance: JD-SW saw a significant rise of 7.375% despite reporting a 90% YoY decline in net profit, while JD Health and JD Logistics also experienced notable increases in their stock prices due to strong profit growth.

Tech Stocks Movement: Major tech stocks like Tencent and Alibaba showed slight gains, while others like Bilibili and XD Inc faced declines, indicating mixed performance within the sector.

Automotive Sector Updates: BYD Company opened with a slight increase after announcing new battery technology, while other automotive stocks like Xiaomi and Li Auto had varied performances, reflecting ongoing developments in the industry.

Annual Results Announcement: JD INDUSTRIALS reported its annual results for the year ending December 2025, showcasing significant financial growth.

Revenue and Profit Growth: The company experienced a 17.4% year-over-year increase in revenue, reaching RMB23.952 billion, and a remarkable 203.8% rise in net profit to RMB2.314 billion.

Earnings Per Share: JD INDUSTRIALS reported an earnings per share (EPS) of RMB1.12 for the year.

Dividends: No dividends have been declared by the company for this financial year.