Citigroup's recent report highlights JD.com's (JD, Financial) first-quarter non-GAAP net profit surge of 43% year-on-year. This growth is a key motivation for JD.com's aggressive expansion into the food delivery sector this year. The results surpassed both Citigroup's and market predictions by 28.9% and 21.1%, respectively.
Despite fierce market competition, JD.com has not provided guidance on expenditures and profit impact from its food delivery business. However, it reaffirmed expectations for double-digit revenue and profit growth in retail this year. Citigroup adjusted JD.com's income forecasts for 2025 to 2027 by 2.7%, 3.4%, and 3.4% respectively, while slightly lowering this year's non-GAAP profit forecast by 0.5%, but raising expectations for 2026 and 2027 by 2.4% each.
For the second quarter of this year, total revenue is expected to climb 13.7% year-on-year to RMB 331.35 billion, with non-GAAP net profit anticipated at RMB 9.34 billion. Citigroup raised JD.com's target stock price from $51 to $52, maintaining a "buy" rating based on its low valuation and shareholder returns.
