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

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China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>JDL reported 1Q23 revenue that is 2.2% vs. our est. and cons., and non-IFRS net loss that was 32% vs. our est., and 18% vs. cons. </li>
<li>We have concerns about 1) the declining number of external integrated supply chain (ISC) customers; </li>
<li>And 2) declining gross margin, which demonstrate the effects of JD’s low-price strategy, in our view; We maintain JDL’s SELL rating and HK$ 9.20 TP.</li>
</ul>


JDL reported 1Q23 revenue that is 2.2% vs. our est. and cons., and non-IFRS net loss that was 32% vs. our est., and 18% vs. cons. 
We have concerns about 1) the declining number of external integrated supply chain (ISC) customers; 
And 2) declining gross margin, which demonstrate the effects of JD’s low-price strategy, in our view; We maintain JDL’s SELL rating and HK$ 9.20 TP.


[JD Logistics (2618 HK, SELL) Earnings Review]: Declining Customer Count Isn’t a Good Sign