JD announced its second-quarter financial report on Thursday, with profits exceeding expectations and the stock price rising by over 4%. While the overall financial report is positive, Morgan Stanley pointed out that amid weak consumption and increasingly fierce competition in e-commerce, JD's revenue only grew by 1.2% year-on-year, which should draw market attention. It is expected that JD's revenue growth will not show significant recovery in the second half of the year.
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Specifically:
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Revenue: The company's net revenue in the second quarter was RMB 291.40 billion (approximately USD 40.1 billion), an increase of 1.2% year-on-year, slightly higher than the estimated RMB 290.51 billion.
Profit: Operating profit was RMB 10.5 billion, a 26.5% increase from the same period last year. The adjusted operating profit margin was 4%, up 1 percentage point from the previous year, estimated at 3.43%.
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In its report on Thursday, Morgan Stanley pointed out that although JD's second-quarter profits exceeded expectations, the revenue growth was only 1.2% year-on-year, which should be a cause for market attention.
JD's management maintains its full-year revenue growth guidance, with Morgan Stanley predicting:
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In the first half of the year, JD and JD Retail's revenue grew by 3.9% year-on-year, slightly higher than the 3.7% growth in total retail sales of consumer goods announced by the National Bureau of Statistics in the first half of the year.
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Morgan Stanley predicts that in the third and fourth quarters, JD Retail's revenue will grow by 4.4% and 4.7% respectively, with an expected full-year growth of 4.2%.
In the first half of this year, JD's net profit increased by 45% year-on-year. JD's management is confident in the growth of net profit. Morgan Stanley predicts a 22% increase in JD's full-year net profit to RMB 43 billion.
At the same time, Morgan Stanley cautiously lowered JD's revenue expectations.
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We have lowered our revenue expectations for JD in 2025 and 2026 by 5% and 10% respectively, reflecting our conservative view on JD's recovery growth momentum in the intense industry competition.
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In conclusion, Morgan Stanley stated that despite JD's excellent profit performance, the slowdown in revenue growth and macroeconomic challenges still need attention. A conservative stance is maintained on JD's future growth, with a target price of $28 and a &#34;hold&#34; rating

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Morgan Stanley believes that despite JD's excellent profit performance, attention should be paid to the slowdown in revenue growth and macroeconomic challenges. They maintain a target price of $28 and a "hold" rating on JD's future growth

- JD released its Q2 financial report, exceeding profit expectations with a stock surge of over 4%. Despite positive overall results, Morgan Stanley highlights JD's revenue growth of only 1.2% YoY amid soft consumer demand and intense e-commerce competition, signaling a market concern. Expectations suggest no significant revenue recovery in the second half.
- Q2 net revenue reached 2914.0 billion RMB (about $401 billion), up 1.2% YoY, slightly above the estimated 2905.1 billion RMB. Operating profit rose by 26.5% to 105 billion RMB, with an adjusted profit margin of 4%, up from last year's 3.43%.
- Morgan Stanley notes JD's Q2 profit beat but emphasizes the sluggish revenue growth at 1.2%. Despite JD's strong profit performance, caution is advised due to revenue slowdown and macroeconomic challenges, maintaining a target price of $28 and a "hold" rating.

JD.com: Strong profits, conservative outlook on future growth