Nomura Securities recently reported on JD.com (JD, Financial), highlighting its robust Q1 2025 performance. The company's non-GAAP earnings per share surged 49% year-on-year, surpassing both Bloomberg's and Nomura's forecasts. Revenue increased by 16% year-on-year, exceeding market expectations of a 12% rise.
JD.com has revised its FY 2025 revenue guidance from "high single-digit growth" to "double-digit growth," driven by the strong performance of JD Retail. Nomura maintains a "buy" rating for JD.com, setting a target price of $56.
Despite the optimistic revenue outlook, JD.com's management remains cautious about its FY 2025 profit prospects, stepping back from previous profit guidance due to the rapid growth of its food delivery (FD) business. Since its launch, JD's FD business has seen peak daily orders possibly reaching 20 million, compared to Meituan's average of 60-70 million daily orders. Nomura suggests the gap between JD and Meituan's FD services might be larger than these figures indicate.
