CICC: Raises JD Group-SW's adjusted net profit forecast for 2025 by 1.8% to RMB 27.5 billion, maintains "Outperform Industry" rating

CICC released a research report predicting that JD.com (09618) will see a 14% year-on-year increase in revenue for the third fiscal quarter, reaching RMB 297.1 billion (the same below), which is higher than the firm's previous expectations, corresponding to a non-GAAP net profit margin of 1.5%. CICC raised its adjusted net profit forecast for JD.com in 2025 by 1.8% to RMB 27.5 billion, while maintaining the profit forecast for 2026 at RMB 38.4 billion; it maintained an "outperform the industry" investment rating and a target price of $41, corresponding to an 11 times adjusted price-to-earnings ratio for 2026 and an upside potential of 28.7%; the current stock price corresponds to 12/8 times adjusted price-to-earnings ratios for 2025/2026. CICC expects that JD.com's daily sales in the third fiscal quarter will still maintain a rapid growth rate, with stable retail business profit margins and delivery performance exceeding expectations, which may drive net profit in the third fiscal quarter above previous expectations