JD’s Strong Q1 2025 Performance and Strategic Expansion Justify Buy Rating Despite Margin Pressures

Benchmark Co. analyst Fawne Jiang has maintained their bullish stance on JD stock, giving a Buy rating today.

Fawne Jiang’s rating is based on JD’s impressive performance in the first quarter of 2025, where the company exceeded expectations in both revenue and net profit. This success was largely driven by the trade-in program, which boosted growth in the 3C and home appliances sectors, along with strong improvements in general merchandise and service revenue. The company also expanded into the food delivery market, achieving significant traction with nearly 20 million daily orders within three months, indicating strategic potential in this new venture.
However, the entry into the food delivery sector introduces some uncertainty regarding margins due to necessary investments and a competitive environment. Despite this, JD’s management has raised its fiscal year 2025 guidance for JD Retail, anticipating double-digit growth in revenue and net profit, supported by favorable policy conditions and enhanced consumer sentiment. These factors contribute to a positive long-term outlook, justifying the Buy rating despite the temporary margin pressures.

In another report released today, DBS also maintained a Buy rating on the stock with a $58.00 price target.