Morgan Stanley forecasts that JD.com (JD, Financial) will achieve double-digit revenue and net profit growth in the first quarter of the fiscal year 2025. This growth is expected to stem primarily from its "trade-in" program expansion into smartphones and other electronics.
For the second quarter of the same fiscal year, while JD.com's revenue growth momentum is expected to continue, maintaining its profit base may be challenging. This is attributed to a low-income base and a high-profit base. Morgan Stanley predicts a 13% year-on-year increase in revenue for the second quarter of 2025, but non-GAAP net profit is expected to remain stable.
Throughout the fiscal year 2025, JD.com's total revenue is projected to grow by 9.6% year-on-year, with non-GAAP net profit also increasing by 9.6%. The implied non-GAAP net profit margin is estimated at 4.13%. Morgan Stanley has set a target price for JD.com at $41 and has given it an "equal-weight" rating.
