According to Bank of America Securities, JD.com is expected to see a narrowing of losses in its new business last quarter, lowering the target price to 141 yuan

Bank of America Securities expects JD.com (09618.HK) to report revenue of RMB 356 billion in the fourth quarter of last year, a year-on-year increase of 2.6%, roughly in line with market expectations. Among this, direct sales revenue is expected to decline by 3.1% year-on-year, primarily due to a 13% drop in sales of home appliances and electronics, partially offset by mid-double-digit growth in general merchandise sales; revenue from the marketplace and other services is expected to grow by 26% year-on-year.

In terms of profit, the bank expects JD Retail's operating profit to decline by 22% year-on-year to RMB 7.8 billion, due to substantial subsidies during the Double Eleven shopping festival, particularly in the home appliance category. The expected loss from new businesses is RMB 14.9 billion, compared to RMB 15.7 billion in the third quarter, with the loss from the food delivery business narrowing but offset by increased investments in Jingxi and overseas operations. The group's overall non-GAAP net profit is expected to be RMB 900 million, higher than the market expectation of RMB 600 million.

The bank has adjusted its revenue growth forecasts for 2025 to 2027 to 13%, 6%, and 8%, based on anticipated increases in consumer incentives and losses in the food delivery business, with non-GAAP net profit forecasts lowered to RMB 27 billion, 29 billion, and 45 billion. The target price for JD.com's Hong Kong stock has been lowered from HKD 149 to HKD 141, and the target price for JD's U.S. stock (JD.US) has been lowered from USD 38 to USD 36; the "Buy" rating is reaffirmed