Investing.com — JD.com Inc will report better-than-expected fourth-quarter results, supported by strong sales growth in home appliances and electronics, along with disciplined investing, according to JPMorgan.
The brokerage added JD (NASDAQ:).com to its positive catalyst watch, given the potential improvement in fourth-quarter results and the company's 2025 guidance.
JP Morgan forecasts JD's fourth-quarter revenue growth to be 9.5% year-over-year, beating consensus estimates by 3%, and adjusted net profit is expected to grow 13% year-over-year , 16% above consensus.
The forecast growth is due to China's government-backed exchange program, which was expanded to include more product categories and higher subsidies in 2025. Sales of electronics and home appliances, key segments for JD, likely grew about 10% year-on-year after year. in the fourth quarter, reflecting higher-than-expected demand.
“As demand in these categories will continue to be driven by government subsidies, we believe JD can invest in general merchandise categories to sustain growth without putting too much pressure on overall margins,” the analyst said. Adjusted net margins are estimated at 2.8%, slightly up from 2.7% a year ago.
JD is expected to benefit from RMB 300 billion in government subsidies for exchanges in 2025, double the amount allocated in the second half of 2024. JPMorgan predicts the company's growth in electronics and home appliances will moderate in 2025, but will remain above national retail sales. tendencies.
JPMorgan reiterated its “Overweight” rating on JD.com, with a $50 price target, implying a significant upgrade from current levels.
JD.com shares have fallen 5% over the past month, but are positioned for better results in the next 3 to 6 months, the note added.
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