Daiwa raised JD.com's target price to 175 yuan and maintained a "Buy" rating

Daiwa published a research report stating that although JD-SW (09618.HK) is shifting its revenue structure towards a comprehensive product offering, which will put pressure on its operating profit margins, it believes this is likely to be offset by higher revenue contributions from its advertising business.

The firm expects JD Group's total revenue in the first quarter to grow by 4.7% year-on-year, with JD Retail revenue increasing by 0.9% year-on-year, primarily driven by a 14% year-on-year growth in department store product revenue. The firm also anticipates JD's non-GAAP net profit for the first quarter to be RMB 5.2 billion, with JD Retail's operating profit margin remaining flat year-on-year at 4.9%.

The firm has raised its earnings per share forecast for JD for 2026 to 2028 by 1% to reflect higher-than-expected revenue growth from department stores and advertising businesses. The firm reiterated its "Buy" rating for the company, raising the target price from RMB 172 to RMB 175