HSBC Research: JD.com's new business investments drag down profits, target price lowered to 137 yuan

AASTOCKS
2026.03.06 06:15

HSBC Global Research published a research report stating that although sales of electronic products and home appliances continue to face challenges that may continue to drag down JD.com (09618.HK)(JD.US) revenue in 2026, the bank's confidence in the general merchandise business is increasing, driven by user expansion, particularly through cross-selling opportunities brought by food delivery.

The bank raised its revenue forecast for JD.com for 2026 to 2027 by 1% to 2%. However, due to potential increased investment in overseas and Jingxi businesses to explore new growth opportunities, the bank has become more cautious about the pace of narrowing losses in new businesses, with assumptions regarding food delivery remaining largely unchanged.

The bank lowered JD.com's target price from HKD 144 to HKD 137, implying about 38% upside potential. Based on the potential for profit recovery and attractive valuation, the bank maintains a "Buy" rating

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