Bank of America Securities has released a report indicating that JD.com (JD, Financial) is expected to announce its fourth-quarter earnings in early March. The report forecasts a 10.1% year-over-year increase in quarterly revenue, reaching 337 billion yuan, surpassing market consensus by 3%. This growth is attributed to an improved product mix, which is expected to enhance the company's gross profit margin.
The report also projects that JD.com's non-GAAP net profit will rise by 18% year-over-year to 9.9 billion yuan, with the non-GAAP net profit margin anticipated to increase to 2.9%. Looking ahead to 2025, and considering a higher base in 2024, Bank of America forecasts JD.com's revenue to grow by 6.7% annually, with non-GAAP net profit expected to increase by 10% to 51 billion yuan.
To reflect strong sales in the home appliance sector during the fourth quarter and the extension of the trade-in subsidy program through 2025, Bank of America has raised JD.com's revenue forecasts for 2024 to 2026 by 1% to 2%. The adjusted net profit forecasts have been increased by 0% to 2%. The firm reaffirms its "Buy" rating on JD.com, setting a target price of 188 HKD.
