In "The Big Banks," Citigroup lowers JD.com's adjusted net profit forecasts for 2025 and 2026, maintaining a "Outperform" rating

Citi published a research report predicting that JD-SW (09618.HK) may be significantly impacted by reduced trade-in subsidies and intense competition in the Chinese market. It currently forecasts that the group's total revenue for the fourth quarter of last year will grow moderately by 1.7%, reaching approximately RMB 352.8 billion, with adjusted net profit expected to decline by 96% year-on-year to RMB 481 million.

The bank predicts that JD's electronic product sales in the last quarter may decline by 17% year-on-year, partially offset by a 16% growth in general merchandise categories; supermarket goods, clothing, and healthcare products are expected to continue recording double-digit growth. Due to weak revenue growth and increased subsidies, Citi estimates that JD's retail profit in the fourth quarter of last year will decline by about 20% year-on-year, while losses in the delivery and international business remain high.

Citi has lowered its adjusted net profit forecasts for JD for 2025 and 2026 by 6% and 5%, respectively, to reflect ongoing operational challenges into the first half of this year, maintaining JD (JD.US) with an "outperform" rating