Credit Suisse lowers JD LOGISTICS' fourth quarter earnings forecast, target price reduced to 18.2 yuan

Credit Suisse released a report stating that it expects JD Logistics (02618.HK) to see a decline in non-International Financial Reporting Standards earnings in the fourth quarter of fiscal year 2025, primarily due to intensified industry competition, the company's product upgrades and optimization of freight operations, as well as one-time events occurring in November and December. On the other hand, the bank believes its previous revenue expectations were relatively conservative and has now raised its revenue forecast.

Overall, the bank anticipates that total revenue for the fourth quarter will grow by 20% year-on-year to approximately RMB 62.5 billion (same below), but expects non-International Financial Reporting Standards net profit to remain flat year-on-year at around RMB 2.2 billion, with a non-International Financial Reporting Standards net profit margin expected to be 3.6%; maintaining a "Buy" rating, with the target price lowered from HKD 19 to HKD 18.2