[JD.com (JD US, SELL, TP US$27) Earnings Preview]: Slow-Growth and Competitive Pressure Remain

[JD.com (JD US, SELL, TP US$30) Target Price Change]: Painful Transition Continues Amid Margin Beat

JD/PDD/E-Commerce Sector Report: JD May Have Better-Than-Expected Performance in 618

China/Asia TMT

Shawn Yang

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Equity Bottom-Up

<ul>
<li>In C4Q22, JD reported in-line total revenue and beat in profit. We trimmed down our forecast on C1Q23 total revenue by 4% due to slower-than-expected rebound in retail spending. </li>
<li>JD is shifting its strategy to be more focused on low price and user, and we suggest that the repositioning period could be painful for the company.</li>
<li>We cut our revenue forecast by 5%. Our estimates on top and bottom lines in 2023 are (6%) and (28%) below cons. Maintain SELL rating and cut TP to US$27.</li>
</ul>


In C4Q22, JD reported in-line total revenue and beat in profit. We trimmed down our forecast on C1Q23 total revenue by 4% due to slower-than-expected rebound in retail spending. 
JD is shifting its strategy to be more focused on low price and user, and we suggest that the repositioning period could be painful for the company.
We cut our revenue forecast by 5%. Our estimates on top and bottom lines in 2023 are (6%) and (28%) below cons. Maintain SELL rating and cut TP to US$27.


[JD.com (JD US) Target Price Change]: Painful Transition Weighs on Both Topline and Margin

JD.com Inc (ADR)

[JD.com (JD US) Target Price Change]: Painful Transition Weighs on Both Topline and Margin