In key news on Hong Kong stocks, JD.com, Inc. (HK:9618) (NASDAQ:JD) shares gained 2.56% today after the company delivered positive results for the first quarter of 2024, beating expectations. The company’s focus on enhancing user experience helped it deliver upbeat results despite intense competition. During the quarter, the company reported adjusted EPS of ¥5.65 ($0.78), surpassing analysts’ expectations of ¥4.69.
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Revenue totaled ¥260.05 billion ($36 billion), marking a 7% year-over-year increase and surpassing the consensus estimate of ¥258.03 billion.
JD.com is a leading e-commerce platform in China, offering products such as electronics, home appliances, and groceries.
Key Highlights from JD.com’s Q1 2024 Results
Among JD.com’s segments, JD Retail continued to contribute the most to total revenues. In the first quarter, JD Retail, including JD Health and JD Industrials, generated revenue of ¥226.83 billion, marking a 6.8% increase from the same period last year.
In Q1, JD.com witnessed a strong recovery in the supermarket category in its Retail segment. The company intensified its strategy to support more small merchants selling affordable goods on its platform, aiming to address intense industry competition and sluggish domestic consumption. Additionally, the company also implemented price cuts and enhanced the overall shopping incentives.
The company’s emphasis on execution led to operational efficiencies and robust user growth, which contributed positively to the overall performance. Net income attributable to shareholders increased by 13.9% to ¥7.1 billion.
Along with the results, JD.com also announced that it repurchased a total of $1.3 billion worth of shares from January 1 to May 15.
Is JD.com a Good Stock to Buy Now?
As per the consensus among analysts on TipRanks, 9618 stock has been assigned a Moderate Buy rating based on five Buy and two Hold recommendations. The JD.com share price target is HK$150.29, which implies an upside of 16.4% from the current price level.
