HSBC Maintains Buy Rating for JD.com (JD) with Revenue Growth Outperforming Expectations

Author's Avatar
May 14, 2025
Article's Main Image

HSBC has reaffirmed its "buy" rating for JD.com (JD, Financial), setting a target price of $48. JD.com's first fiscal quarter revenue rose by 16% year-over-year to RMB 301 billion, surpassing HSBC and market expectations by 3-4%. Product sales increased by 16%, with electronics and home appliances growing by 17%, and daily necessities by 15%.

The company's service income rose 14% year-over-year, driven by market improvements. JD's gross margin reached 15.9%, marking a 0.6 percentage point increase year-on-year, exceeding expectations. Non-GAAP net profit was up 43% to RMB 12.8 billion, outperforming market forecasts by 23-25%.

HSBC forecasts a 15% year-on-year revenue growth for JD.com in the second quarter. The ongoing trade-in trend and reduced losses in the food delivery business (-21%) contribute to this positive outlook.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.