External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<div><div><div><div><ul><li>Consumption sentiment and offline activities’ recovery pace continued to weigh on internet sector’s 3Q financials performance.</li><li>Looking into 4Q and 2023, business model robustness, operating leverage improvement, and ability to expand into new revenue streams will be the key stock alpha drivers, while the heavily under-owned China Internet sector will remain sensitive to policies and other sentiment related beta drivers.</li><li>We expect leading technology companies will play vital role in building digital infrastructure and empowering enterprise digital transformation. </li></ul></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Consumption sentiment and offline activities’ recovery pace continued to weigh on internet sector’s 3Q financials performance.Looking into 4Q and 2023, business model robustness, operating leverage improvement, and ability to expand into new revenue streams will be the key stock alpha drivers, while the heavily under-owned China Internet sector will remain sensitive to policies and other sentiment related beta drivers.We expect leading technology companies will play vital role in building digital infrastructure and empowering enterprise digital transformation. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Internet Sector – 3Q22 preview: near term bumpy recovery

Equity Bottom-Up

<ul><li>For 3Q25E, we anticipate JD.com (JD) to ink total revenue of RMB295.0bn, up 13.3% YoY, inline with Bloomberg consensus, and to report non-GAAP net profit of RMB4.4bn, down 67% YoY due to incremental investment in food delivery business, but better than consensus at RMB3.7bn.</li><li>We are looking for 17% YoY growth in OP for JD Retail (JDR) in 3Q25E, and our OP forecast is 5% better than consensus, driven by solid revenue growth and OPM expansion aided by the scale effect and increase in revenue contribution from high-margin services revenue.</li><li>We have baked in OP loss of RMB14.7bn for new businesses segment in 3Q25E (2Q25: loss of RMB14.8bn), among which we are looking for a slightly narrowed QoQ loss from food delivery (FD) business, aided by improvement in unit economics driven by optimization in user subsidies and improvement in operating efficiency, while offset by sequentially increased investment in other new businesses such as Jingxi. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

For 3Q25E, we anticipate JD.com (JD) to ink total revenue of RMB295.0bn, up 13.3% YoY, inline with Bloomberg consensus, and to report non-GAAP net profit of RMB4.4bn, down 67% YoY due to incremental investment in food delivery business, but better than consensus at RMB3.7bn.We are looking for 17% YoY growth in OP for JD Retail (JDR) in 3Q25E, and our OP forecast is 5% better than consensus, driven by solid revenue growth and OPM expansion aided by the scale effect and increase in revenue contribution from high-margin services revenue.We have baked in OP loss of RMB14.7bn for new businesses segment in 3Q25E (2Q25: loss of RMB14.8bn), among which we are looking for a slightly narrowed QoQ loss from food delivery (FD) business, aided by improvement in unit economics driven by optimization in user subsidies and improvement in operating efficiency, while offset by sequentially increased investment in other new businesses such as Jingxi. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

JD.com (JD US) - Core JD Retail Earnings Growth Likely Better than Expectation

<ul><li>JD.com (JD) reported (14 Aug) 2Q25 results: revenue was RMB356.7bn, up 22.4% YoY (2Q24: 1.2%；1Q25: 15.8%), 6% ahead of both our forecast and Bloomberg consensus, driven by better-than-expected JD Retail (JDR) revenue growth and incremental logistics revenue contributed from food delivery (FD) business.</li><li>Non-GAAP NP was RMB7.4bn, down 49% YoY due to incremental investment in FD, but 38% ahead of consensus, driven by a 16% beat on JDR’s OP.</li><li>Operating loss of RMB14.8bn for new businesses was wider than our previous expectation of RMB10.6bn, owing to more aggressive-than-expected investment in FD.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

JD.com (JD) reported (14 Aug) 2Q25 results: revenue was RMB356.7bn, up 22.4% YoY (2Q24: 1.2%；1Q25: 15.8%), 6% ahead of both our forecast and Bloomberg consensus, driven by better-than-expected JD Retail (JDR) revenue growth and incremental logistics revenue contributed from food delivery (FD) business.Non-GAAP NP was RMB7.4bn, down 49% YoY due to incremental investment in FD, but 38% ahead of consensus, driven by a 16% beat on JDR’s OP.Operating loss of RMB14.8bn for new businesses was wider than our previous expectation of RMB10.6bn, owing to more aggressive-than-expected investment in FD.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

JD.com (JD US) - Food Delivery Investment Weighed on Near-Term Earnings but Target Is Clear

<ul><li>For 2Q25E, we anticipate JD.com (JD) to ink total revenue of RMB337.4bn, up 15.8% YoY, 2% better than Bloomberg consensus.</li><li>However, with the stepping up in investment of food delivery (FD) business to drive for user growth and shopping frequency improvement, which we have baked in c. RMB10bn impact on net profit, we are forecasting non-GAAP net profit of RMB4.6bn, representing a 68% YoY decline.</li><li>JD has observed strong growth in daily active users for the main app, and an early-stage increase in cross-selling from FD users to some categories of JD Retail, such as daily necessities and home cleaning. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

For 2Q25E, we anticipate JD.com (JD) to ink total revenue of RMB337.4bn, up 15.8% YoY, 2% better than Bloomberg consensus.However, with the stepping up in investment of food delivery (FD) business to drive for user growth and shopping frequency improvement, which we have baked in c. RMB10bn impact on net profit, we are forecasting non-GAAP net profit of RMB4.6bn, representing a 68% YoY decline.JD has observed strong growth in daily active users for the main app, and an early-stage increase in cross-selling from FD users to some categories of JD Retail, such as daily necessities and home cleaning. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

JD.com (JD US) - Increasing Investment in Food Delivery Weighs on Profit

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Equity Derivatives

<ul><li>We recommend opening an investment position in JD80, a DR referencing JD.COM, INC., which is listed on the Hong Kong Stock Exchange.</li><li>The average price of the underlying securities in the portfolio increased slightly by 0.15%, while global equity markets remained volatile amid ongoing tensions between Israel and Iran.</li><li>Our study through the KTX USDTHB Carry Trade model indicates that the baht has continued to appreciate and is now in an overvalued zone.</li></ul>

We recommend opening an investment position in JD80, a DR referencing JD.COM, INC., which is listed on the Hong Kong Stock Exchange.The average price of the underlying securities in the portfolio increased slightly by 0.15%, while global equity markets remained volatile amid ongoing tensions between Israel and Iran.Our study through the KTX USDTHB Carry Trade model indicates that the baht has continued to appreciate and is now in an overvalued zone.

China

JD.com is a Chinese e-commerce company and a supply chain-based technology and service provider. It offers a wide range of products through its online retail platform, including electronics, general merchandise, and fresh food, complemented by its logistics and digital health services. Headquartered in Beijing, China, the company was founded in 1998.

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JD.com (9618 HK)

China Internet Sector – 3Q22 preview: near term bumpy recovery

We expect leading technology companies will play vital role in building digital infrastructure and empowering enterprise digital transformation.

CMB International

JD.com (JD US) - Core JD Retail Earnings Growth Likely Better than Expectation

For 3Q25E, we anticipate JD.com (JD) to ink total revenue of RMB295.0bn, up 13.3% YoY, inline with Bloomberg consensus, and to report non-GAAP net...

CMB International

JD.com (JD US) - Food Delivery Investment Weighed on Near-Term Earnings but Target Is Clear

JD.com (JD) reported (14 Aug) 2Q25 results: revenue was RMB356.7bn, up 22.4% YoY (2Q24: 1.2%；1Q25: 15.8%), 6% ahead of both our forecast and...

CMB International

JD.com (JD US) - Increasing Investment in Food Delivery Weighs on Profit

For 2Q25E, we anticipate JD.com (JD) to ink total revenue of RMB337.4bn, up 15.8% YoY, 2% better than Bloomberg consensus.

CMB International

KTX Tactical DR Picks

We recommend opening an investment position in JD80, a DR referencing JD.COM, INC., which is listed on the Hong Kong Stock Exchange. The average...

Krungthai XSpring

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