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JD.com, Inc. Class A (HK:9618)
:9618
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JD.com, Inc. Class A
(9618)
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Select Model
Rating:75Outperform
Price Target:
HK$149.00
▲(12.03% Upside)
JD.com's strong revenue growth and operational efficiency are significant strengths, supported by a low P/E ratio and attractive dividend yield. However, increased leverage and declining cash flow growth pose risks. The earnings call provided a balanced outlook, with strong user growth but pressure on net income due to strategic investments.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand and effective business strategies, supporting long-term market position and expansion capabilities.
User Growth and Engagement
Significant user growth and engagement enhance JD.com's competitive edge, fostering customer loyalty and driving future revenue streams.
Logistics and Service Revenue
Expansion in logistics and services diversifies revenue streams and strengthens JD.com's infrastructure, supporting sustainable growth.
Negative Factors
Decline in Cash Flow
A sharp decline in cash flow limits JD.com's ability to invest in growth initiatives, potentially impacting long-term financial stability.
Increased Leverage
Higher leverage can strain JD.com's financial flexibility, increasing risk and potentially affecting its ability to respond to market changes.
Margin Pressure
Margin pressure from new investments could affect JD.com's profitability, challenging its ability to maintain competitive pricing and reinvest in growth.
JD.com, Inc. Class A (9618) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$429.32B
Dividend Yield2.95%
Average Volume (3M)17.75M
Price to Earnings (P/E)9.7
Beta (1Y)1.67
Revenue Growth14.18%
EPS Growth32.25%
CountryHK
Employees570,895
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)2.71
Shares Outstanding2,981,000,000
10 Day Avg. Volume20,547,097
30 Day Avg. Volume17,754,141
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)1.60
Price to Sales (P/S)0.33
P/FCF Ratio8.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$166.20Price Target Upside24.96% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
JD.com, Inc. Class A Business Overview & Revenue Model
Company DescriptionJD.com, Inc. provides supply chain-based technologies and services in the People's Republic of China. The company offers computers, communication, and consumer electronics products, as well as home appliances; and general merchandise products comprising food, beverage and fresh produce, baby and maternity products, furniture and household goods, cosmetics and other personal care items, pharmaceutical and healthcare products, books, automobile accessories, apparel and footwear, bags, and jewelry. It also provides online marketplace services for third-party merchants; marketing services; and omni-channel solutions to customers and offline retailers, as well as online healthcare services. In addition, the company develops, owns, and manages its logistics facilities and other real estate properties to support third parties; and provides asset management services for logistics property investors. Further, it provides integrated data, technology, business, and user management industry solutions to support the digitization of enterprises and institutions. The company was formerly known as 360buy Jingdong Inc. and changed its name to JD.com, Inc. in January 2014. JD.com, Inc. was incorporated in 2006 and is headquartered in Beijing, the People's Republic of China.
How the Company Makes MoneyJD.com makes money primarily through its online retail platform, where it offers products directly to consumers as well as through third-party sellers. The company's revenue streams include sales of goods from its own inventory, commission fees from third-party merchants, and advertising services provided to sellers on its platform. JD.com also generates income from its logistics services, which are available to third-party customers as well as its own retail operations. The company's strategic partnerships, investments in emerging technologies, and expansion into other sectors such as healthcare and finance contribute to its revenue diversification and growth.
JD.com, Inc. Class A Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and profitability in JD Retail, as well as significant user growth and engagement. However, this was offset by a decline in net income and cash flow due to investments in new business initiatives, resulting in a balanced outlook.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
JD.com reported a solid top-line growth of 22% year-on-year in Q2 2025, with total revenues reaching RMB 357 billion. This growth was driven by acceleration across most business lines, including electronics and home appliances, general merchandise, and service revenues.
JD Retail Profitability
JD Retail's non-GAAP operating profit increased by 38% year-on-year to RMB 13.9 billion in Q2, with an operating margin of 4.5%, up from 3.9% in the same period last year.
User Growth and Engagement
Quarterly active customers accelerated notably to over 40% year-on-year in Q2, with shopping frequency on JD's platform rising by over 40% and JD Plus members' frequency growing by over 50%.
General Merchandise Performance
The general merchandise business delivered strong performance with revenues up 16% year-on-year in Q2, marking consecutive quarters of double-digit growth.
JD Food Delivery Expansion
JD Food Delivery experienced rapid growth, with daily order volumes increasing exponentially in Q2. The business is generating clear synergies with the core retail business, particularly in cross-selling opportunities.
Negative Updates
Non-GAAP Net Income Decline
Non-GAAP net income attributable to ordinary shareholders was RMB 7.4 billion, down from RMB 14.5 billion in the same period last year, due to investments in new businesses like food delivery.
Impact on Cash Flow
Last 12 months free cash flow was RMB 10 billion, down from RMB 56 billion in the same period last year, primarily due to cash outflows from the trading program and a decline in operating income.
Margin Pressure from New Businesses
Non-GAAP net profit margin decreased to 2.1% in Q2 due to strategic investments in new businesses such as food delivery, impacting near-term profitability.
Company Guidance
During JD.com's second quarter earnings call for 2025, the company reported a robust 22% year-on-year increase in total revenues, reaching RMB 357 billion. The core JD Retail business saw a significant 38% rise in non-GAAP operating profit, achieving RMB 13.9 billion with an operating margin expanding to 4.5% from 3.9% the previous year. JD's user growth was notable, with quarterly active customers increasing by over 40%, and JD Plus members' shopping frequency growing by more than 50% year-on-year. Despite a decrease in non-GAAP net income to RMB 7.4 billion due to strategic investments in new areas like food delivery, the company remains optimistic about long-term growth. JD's food delivery business showed rapid expansion, contributing to a 34% increase in logistics and other service revenues. Furthermore, JD's general merchandise category maintained strong performance with 16% revenue growth, driven by sustained double-digit growth across supermarkets, fashion, and home goods. The company's international expansion plans, particularly in Europe, are also progressing, with strategic investments aimed at enhancing global retail capabilities.JD.com, Inc. Class A Financial Statement Overview
Summary
JD.com exhibits strong financial performance with consistent revenue and profit growth, robust profitability ratios, and stable financial health. However, attention is needed on the declining cash flow trend.Income Statement
JD.com has demonstrated strong revenue growth, with a 10.67% increase from 2023 to 2024 and continued growth in TTM. Net profit margins have improved significantly, indicating enhanced operational efficiency. Gross profit margin remains healthy, and both EBIT and EBITDA margins show positive trends, suggesting robust profitability.75
Positive
Balance Sheet
The company's balance sheet is solid, with a favorable debt-to-equity ratio indicating manageable leverage. The equity ratio is strong, reflecting financial stability. Return on equity has improved, showcasing effective use of shareholder funds. JD.com maintains a substantial cash position, enhancing its financial flexibility.70
Positive
Cash Flow
Cash flow metrics are strong, with positive free cash flow growth and a healthy operating cash flow to net income ratio, indicating efficient cash generation relative to earnings. However, a decrease in operating cash flow from 2023 to TTM may require attention.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.27T | 1.16T | 1.08T | 1.05T | 951.59B | 745.80B |
| Gross Profit | 182.53B | 113.44B | 159.70B | 147.07B | 70.01B | 109.11B |
| EBITDA | 42.75B | 47.36B | 42.82B | 25.58B | 9.61B | 16.76B |
| Net Income | 38.65B | 41.36B | 24.17B | 10.38B | -3.56B | 49.41B |
Balance Sheet | ||||||
| Total Assets | 706.94B | 698.23B | 628.96B | 595.25B | 496.51B | 422.29B |
| Cash, Cash Equivalents and Short-Term Investments | 213.84B | 234.00B | 190.15B | 219.96B | 185.33B | 146.66B |
| Total Debt | 100.79B | 89.77B | 68.43B | 65.05B | 34.14B | 31.55B |
| Total Liabilities | 409.65B | 384.94B | 332.58B | 321.13B | 249.72B | 200.67B |
| Stockholders Equity | 227.16B | 239.35B | 231.86B | 213.37B | 208.91B | 187.54B |
Cash Flow | ||||||
| Free Cash Flow | 8.16B | 44.28B | 39.51B | 35.84B | 23.74B | 31.63B |
| Operating Cash Flow | 24.82B | 58.09B | 59.52B | 57.82B | 42.30B | 42.54B |
| Investing Cash Flow | 33.70B | -871.00M | -59.54B | -54.03B | -74.25B | -57.81B |
| Financing Cash Flow | -24.32B | -21.00B | -5.81B | 1.18B | 19.50B | 71.07B |
JD.com, Inc. Class A Technical Analysis
Positive
133.00
Price Trends
126.27
Positive
127.93
Positive
137.21
Negative
Market Momentum
2.68
Negative
55.52
Neutral
37.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9618, the sentiment is Positive. The current price of 133 is above the 20-day moving average (MA) of 127.41, above the 50-day MA of 126.27, and below the 200-day MA of 137.21, indicating a neutral trend. The MACD of 2.68 indicates Negative momentum. The RSI at 55.52 is Neutral, neither overbought nor oversold. The STOCH value of 37.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9618.
JD.com, Inc. Class A Risk Analysis
JD.com, Inc. Class A disclosed 111 risk factors in its most recent earnings report. JD.com, Inc. Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
JD.com, Inc. Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | HK$429.32B | 9.73 | 17.17% | 2.95% | 14.18% | 32.25% | |
74 Outperform | 3.32T | 18.50 | 14.44% | 1.13% | 5.08% | 127.82% | |
64 Neutral | 624.55B | 19.40 | 16.01% | ― | 17.67% | 33.64% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
HK:9618
JD.com, Inc. Class A
137.60
2.61
1.93%
MPNGF
Meituan
13.20
-6.58
-33.27%
HK:9988
Alibaba Group Holding Ltd.
172.00
75.86
78.91%
JD.com, Inc. Class A Corporate Events
JD.com Launches Takeover Bid for CECONOMY AG
Sep 1, 2025
JD.com has announced a voluntary public takeover offer for CECONOMY AG, the parent company of European consumer electronics retailers MediaMarkt and Saturn. The offer, priced at EUR 4.60 per share, is subject to regulatory clearances and aims to strengthen JD.com’s position in the European market. The takeover will be financed through a combination of acquisition loans and JD.com’s cash reserves, with the acceptance period running from September 1 to November 10, 2025. This strategic move highlights JD.com’s efforts to expand its global footprint and enhance its influence in the consumer electronics sector.
The most recent analyst rating on (HK:9618) stock is a Buy with a HK$137.00 price target. To see the full list of analyst forecasts on JD.com, Inc. Class A stock, see the HK:9618 Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.