In "The Big Banks," Citigroup: JD.com's fourth-quarter performance was below expectations, facing a 65% drop in EBIT after adjustments for high base figures in the first quarter

Citi published a research report indicating that JD-SW (09618.HK) performed below expectations in the fourth quarter of last year, with total revenue increasing by 1.5% year-on-year to RMB 352.3 billion (same below), and adjusted LIBT at RMB 3.1 billion, falling short of the market's expected loss of RMB 2.9 billion. The bank noted that the company will still face a high base in the first quarter. The bank expects total revenue in the first quarter of this year to increase by 3% year-on-year, with adjusted EBIT expected to decline by 65% year-on-year to RMB 4 billion; it also anticipates that the unit profit of the takeaway business will further improve, but losses in Jingxi and international business will worsen by 2026, leading the bank to lower its adjusted net profit forecast for this year by 4%. The bank expects JD's growth to improve in the second half of this year.

The bank maintains a target price of $41 for JD (JD.US) in the U.S. stock market, with a rating of "Outperform."