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JD.com, Inc. Class A (HK:9618)
:9618
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JD.com, Inc. Class A
(9618)
Select Model
Select Model
Rating:72Outperform
Price Target:
HK$146.00
▲(10.77% Upside)
JD.com's strong financial performance, particularly in revenue growth and operational efficiency, is a key strength. The low P/E ratio and reasonable dividend yield enhance its valuation appeal. However, technical indicators suggest caution, and strategic investments are impacting net income and cash flow, balancing the overall outlook.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand across business lines, enhancing JD.com's market position and supporting long-term expansion.
User Growth and Engagement
Significant user growth and engagement suggest increased platform loyalty and potential for sustained revenue growth through higher customer retention.
Logistics and Service Revenue Expansion
Expansion in logistics and service revenues diversifies income streams and strengthens JD.com's competitive edge in e-commerce logistics.
Negative Factors
Non-GAAP Net Income Decline
A decline in net income due to strategic investments may strain short-term profitability, impacting financial flexibility for future growth.
Impact on Cash Flow
Significant decline in free cash flow limits JD.com's ability to fund new initiatives and manage debt, posing a risk to financial stability.
Regulatory Challenges
Regulatory hurdles in issuing stablecoins may hinder JD.com's fintech expansion, affecting its ability to innovate in financial services.
JD.com, Inc. Class A (9618) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$412.05B
Dividend Yield2.98%
Average Volume (3M)16.20M
Price to Earnings (P/E)9.3
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. Volume12,472,613
30 Day Avg. Volume16,195,756
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$165.77Price Target Upside25.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
JD.com, Inc. Class A Business Overview & Revenue Model
Company DescriptionJD.com, Inc. Class A (9618) is a leading Chinese e-commerce company that operates a comprehensive online retail platform. It primarily focuses on a wide range of products including electronics, apparel, home goods, and groceries. JD.com offers both direct sales, where it sells products directly to consumers, and a marketplace model that allows third-party sellers to list their products on its platform. The company is also heavily invested in logistics and technology, ensuring efficient delivery services and enhancing customer experience.
How the Company Makes MoneyJD.com generates revenue primarily through its direct sales to consumers, where it takes a percentage of sales from the products it sells directly on its platform. Additionally, the company earns revenue from its marketplace operations by charging third-party sellers fees for listing their products and a commission on sales made through the platform. JD.com also capitalizes on its logistics services, offering fulfillment and delivery services to other businesses, which contributes to its earnings. Strategic partnerships with various brands and technology companies further bolster its revenue streams by enhancing product offerings and expanding market reach.
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
131.80
Price Trends
128.58
Positive
127.95
Positive
136.53
Negative
Market Momentum
-0.61
Positive
52.44
Neutral
77.65
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 131.8 is below the 20-day moving average (MA) of 131.90, above the 50-day MA of 128.58, and below the 200-day MA of 136.53, indicating a neutral trend. The MACD of -0.61 indicates Positive momentum. The RSI at 52.44 is Neutral, neither overbought nor oversold. The STOCH value of 77.65 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
UnderperformOutperform
Sector (61)
HK:9618
JD.com, Inc. Class A
130.80
-21.15
-13.92%
HK:3690
Meituan
100.00
-84.70
-45.86%
HK:9988
Alibaba Group Holding Ltd.
171.00
76.73
81.39%
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.