Analyst

Steve Zhou, CFA

15 years of experience in both buy and sell-side in Asia, mainly looking at the consumer sector.

JD.com (JD US):  Strong Profitability And Upsized Share Buyback in 2Q24

JD.com (9618 HK):  1Q24 Results On Track

Alibaba (9988 HK):  Core Segments Moving Into The Right Direction

JD.com (JD US / 9618 HK):  Announced 2.8% Share Buyback In 1Q24 + My 1Q24 Preview

Equity Capital Markets

Alibaba Group Holding  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group Holding (9988 HK)</a> and <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com (9618 HK)</a> both announced the issuance of convertible debt last week (Alibaba on May 23 and JD.com on May 21). </li>
<li>Both have mentioned that the reasons for the issuance are the low funding cost (0.25% coupon for JD.com and 0.5% for Alibaba) and to fund their current share repurchase program. </li>
<li>I think the convertible debt structures makes sense and it is beneficial for both companies to buy back as much as possible at the current share price.</li>
</ul>



Alibaba Group Holding (9988 HK) and JD.com (9618 HK) both announced the issuance of convertible debt last week (Alibaba on May 23 and JD.com on May 21). 
Both have mentioned that the reasons for the issuance are the low funding cost (0.25% coupon for JD.com and 0.5% for Alibaba) and to fund their current share repurchase program. 
I think the convertible debt structures makes sense and it is beneficial for both companies to buy back as much as possible at the current share price.


Alibaba/JD.com:  Thoughts On The Recent Convertible Bond Issuance