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)

<ul><li>For this year’s Double 11 sales promotion, overall industry delivered positive and stable YoY GMV growth (2.1%, per Syntun data), with Alibaba and JD.com (JD) both delivered positive YoY growth in GMV, order volume, and user volume.</li><li>Live streaming e-commerce GMV growth was still solid given a relatively lower base compared to horizontal e-commerce platform.</li><li>Ecommerce platforms are enhancing supply chain efficiency, product supply, and content ecosystem, as well as optimizing traffic allocation, to enhance user engagement, strengthen consumer mindshare on value for money products, and facilitate transactions, which in turn driving better ROI for merchants, and increasing merchants’ willingness to spend more on advertising. </li></ul>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.

For this year’s Double 11 sales promotion, overall industry delivered positive and stable YoY GMV growth (2.1%, per Syntun data), with Alibaba and JD.com (JD) both delivered positive YoY growth in GMV, order volume, and user volume.Live streaming e-commerce GMV growth was still solid given a relatively lower base compared to horizontal e-commerce platform.Ecommerce platforms are enhancing supply chain efficiency, product supply, and content ecosystem, as well as optimizing traffic allocation, to enhance user engagement, strengthen consumer mindshare on value for money products, and facilitate transactions, which in turn driving better ROI for merchants, and increasing merchants’ willingness to spend more on advertising. 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 – Trends observed from this year’s Double 11 shopping festival

Equity Bottom-Up

<ul><li>JD.com (JD) reported (16 Aug) 2Q23 results: revenue was RMB287.9bn, up 7.6% YoY, 2.5/3.2% higher than our forecast/Bloomberg consensus.</li><li>Non-GAAP net income was RMB8.6bn, ahead of our estimates/consensus at RMB8.2/7.8bn, thanks to better-than-expected loss reduction for new businesses, and translated into a non-GAAP NPM of 3.0% (2Q22: 2.4%).</li><li>Despite the beat on overall margins, the 0.2pp miss on OPM of JD Retail (JDR) sparked concerns that its core business margin expansion trajectory could face fluctuations. </li></ul>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) reported (16 Aug) 2Q23 results: revenue was RMB287.9bn, up 7.6% YoY, 2.5/3.2% higher than our forecast/Bloomberg consensus.Non-GAAP net income was RMB8.6bn, ahead of our estimates/consensus at RMB8.2/7.8bn, thanks to better-than-expected loss reduction for new businesses, and translated into a non-GAAP NPM of 3.0% (2Q22: 2.4%).Despite the beat on overall margins, the 0.2pp miss on OPM of JD Retail (JDR) sparked concerns that its core business margin expansion trajectory could face fluctuations. 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) – Grinding through growth strategy pains

<ul><li>Based on NBS data, 7M23 online retail sales GMV/ online physical goods GMV reached RMB8.3/7.0tn, up 12.5/10.0% YoY.</li><li>The YoY growth of online physical goods GMV in July 2023 came in at 5.0% (June 2023: 7.1%; July 2022: 6.3%), which indicates that consumption recovery still takes time.</li><li>Although overall topline growth of e-commerce platforms is likely to face short-term fluctuation due to macro uncertainties, e-commerce platforms are driving revenue growth and scale expansion in an efficient way and targeting for operating efficiency improvement, which likely leads to a benign than expected industry competition, and better than expected earnings growth in 2Q-3Q23. </li></ul>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.

Based on NBS data, 7M23 online retail sales GMV/ online physical goods GMV reached RMB8.3/7.0tn, up 12.5/10.0% YoY.The YoY growth of online physical goods GMV in July 2023 came in at 5.0% (June 2023: 7.1%; July 2022: 6.3%), which indicates that consumption recovery still takes time.Although overall topline growth of e-commerce platforms is likely to face short-term fluctuation due to macro uncertainties, e-commerce platforms are driving revenue growth and scale expansion in an efficient way and targeting for operating efficiency improvement, which likely leads to a benign than expected industry competition, and better than expected earnings growth in 2Q-3Q23. 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 – July online retail sales recap

<ul><li>Based on NBS data, 1H23 online retail sales GMV/ online physical goods GMV reached RMB7.2/6.1tn, up 13.1/10.8% YoY, and were both 39% above 1H20 level.</li><li>The YoY growth of online physical goods GMV in June 2023 came in at 7.1% and indicates a two-year CAGR of 6.4%, falling from two-year CAGR of 11.8% in May 2023, as part of the 618 shopping festival sales GMV was frontloaded to May, and the overall consumption sentiment takes time to recover.</li><li>Although e-commerce platforms are escalating investment to enhance consumer mindshare gain amid recovering consumption sentiment, the deterioration of industry competitive landscape is likely to be better than feared given that investments are ROI driven, and this may indicate a better than market expected margin profile for e-commerce platforms in the near term, in our view. </li></ul>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.

Based on NBS data, 1H23 online retail sales GMV/ online physical goods GMV reached RMB7.2/6.1tn, up 13.1/10.8% YoY, and were both 39% above 1H20 level.The YoY growth of online physical goods GMV in June 2023 came in at 7.1% and indicates a two-year CAGR of 6.4%, falling from two-year CAGR of 11.8% in May 2023, as part of the 618 shopping festival sales GMV was frontloaded to May, and the overall consumption sentiment takes time to recover.Although e-commerce platforms are escalating investment to enhance consumer mindshare gain amid recovering consumption sentiment, the deterioration of industry competitive landscape is likely to be better than feared given that investments are ROI driven, and this may indicate a better than market expected margin profile for e-commerce platforms in the near term, in our view. 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 – June online retail sales recap

<ul><li>JD Retail (JDR) will likely deliver better than our previously expected GMV and revenue growth for 2Q23E, aided by improvement of third-party business operating environment, and better than expected 618 shopping festival results. In addition, JD remains committed in driving for quality revenue and earnings growth.</li><li>In our view, JD will remain cautious in investing heavily to drive for new user acquisition until it finished enhancement of supply chain capabilities, which likely speaks to better-than-expected earnings growth in the near term, while the company still needs to grow user base in order to drive for steady platform business development over the long-run.</li><li>We lifted our DCF-based target price by 1% to US$63.4 to factor in potential better-than-expected JDR revenue and earnings growth, which translates into 20.3x 2023E non-GAAP PE. Maintain BUY.</li></ul>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 Retail (JDR) will likely deliver better than our previously expected GMV and revenue growth for 2Q23E, aided by improvement of third-party business operating environment, and better than expected 618 shopping festival results. In addition, JD remains committed in driving for quality revenue and earnings growth.In our view, JD will remain cautious in investing heavily to drive for new user acquisition until it finished enhancement of supply chain capabilities, which likely speaks to better-than-expected earnings growth in the near term, while the company still needs to grow user base in order to drive for steady platform business development over the long-run.We lifted our DCF-based target price by 1% to US$63.4 to factor in potential better-than-expected JDR revenue and earnings growth, which translates into 20.3x 2023E non-GAAP PE. Maintain BUY.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) – Driving for Quality Growth Remains Key Theme

China

JD.com, Inc. is an online direct sales company in China. The Company offers a wide selection of products through its website and mobile applications. JD.com sells appliances, computers, digital products, communication products, garments, books, and household items to consumers and vendors.

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JD.com (9618 HK)

China Internet – Trends observed from this year’s Double 11 shopping festival

For this year’s Double 11 sales promotion, overall industry delivered positive and stable YoY GMV growth (2.1%, per Syntun data), with Alibaba and...

CMB International

JD.com (JD US) – Grinding through growth strategy pains

JD.com (JD) reported (16 Aug) 2Q23 results: revenue was RMB287.9bn, up 7.6% YoY, 2.5/3.2% higher than our forecast/Bloomberg consensus.

CMB International

China Internet – July online retail sales recap

The YoY growth of online physical goods GMV in July 2023 came in at 5.0% (June 2023: 7.1%; July 2022: 6.3%), which indicates that consumption...

CMB International

China Internet – June online retail sales recap

Based on NBS data, 1H23 online retail sales GMV/ online physical goods GMV reached RMB7.2/6.1tn, up 13.1/10.8% YoY, and were both 39% above 1H20...

CMB International

JD.com (JD US) – Driving for Quality Growth Remains Key Theme

JD Retail (JDR) will likely deliver better than our previously expected GMV and revenue growth for 2Q23E, aided by improvement of third-party...

CMB International

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