JD.com (JD, Financial) saw its stock price increase by over 2%, reaching $39.285. This rise is attributed to favorable research reports indicating that JD.com is benefiting from policies encouraging the exchange of old products for new ones. The expanded categories and scale involved in this policy are expected to continuously bolster JD.com's sales in electronics, along with improvements in supply chain efficiency.
Based on these factors, BOCOM International has revised its forecasts for JD.com’s revenue and profit in the fourth quarter of 2024, increasing them by 3% and 12%, respectively. The financial institution maintains a "buy" rating and has adjusted the target price from 217 Hong Kong dollars to 233 Hong Kong dollars, indicating confidence in JD.com's continued healthy profit growth.
Additionally, China Merchants Securities projects that JD.com’s revenue will reach 334 billion RMB in Q4 2024, reflecting a 9% year-on-year increase, with accelerated quarterly growth. JD Retail's gross merchandise volume (GMV) is expected to show high single-digit growth annually and accelerated growth quarterly, supporting a 9.5% year-on-year increase in retail revenue.
These upward revisions are primarily due to higher-than-expected growth driven by the product exchange policy since September of last year.
