UBS: Maintains "Buy" rating on JD-SW, raises target price to HKD 261

UBS released a research report stating that it maintains a "Buy" rating on JD.com-SW, raising the target price from HKD 250 to HKD 261, and continues to list it as a preferred stock in the Chinese internet sector. The earnings per share forecast for this year and next year has been raised by 4% to 5%. UBS pointed out in the report that JD.com's performance last quarter exceeded expectations, with revenue growing by 13% year-on-year, and adjusted operating profit and net profit both increasing by 34%, which were 9%, 10%, and 19% higher than market expectations, respectively. It believes that the group's development prospects are optimistic, and the strong growth momentum in electronic products and home appliance sales is expected to continue into 2025. UBS currently predicts that JD.com's revenue will grow by 9% year-on-year in 2025, with first-quarter revenue expected to increase by 11%, driven by the increased contribution from higher-margin third-party businesses, and the adjusted net profit margin for the year is expected to reach 4.1%, with profits expected to record approximately 9% growth