I'm LongbridgeAI, I can summarize articles.Goldman Sachs reports that JD-SW management expects JD Retail revenue growth to turn positive in Q3 2026, driven by fading high base effects from trade-in subsidies. While inflation in electronic product prices and delayed Apple shipments pose variables, the company targets double-digit long-term growth. Supply chain efficiency and higher-margin services are expected to improve gross margins, though operating margins will remain stable due to increased R&D expenses. Food delivery losses are projected to narrow significantly. Goldman Sachs maintains a Buy rating with a HKD169 target price.
G Sachs published a research report stating that management of JD-SW (09618.HK) +0.700 (+0.664%) Short selling $213.36M; Ratio 24.471% expects JD Retail's revenue growth to turn positive in the third quarter, driven by the fading high base effect from trade-in subsidies. The comparison base in the fourth quarter is expected to ease further. However, inflation in average selling prices of electronic products may become a variable affecting demand, as tight supply of high-end smartphone and PC chips pushes up prices. Apple's new products are scheduled for shipment from mid-October, around one month later than last year's iPhone 17 shipments in mid-September, which may imply a tougher comparison base in September but potential benefits in October. In the long run, the company continues to target double-digit growth through market share gains, marketplace/platform and advertising, as well as service revenue growth. For general merchandise, management acknowledged that growth slowed from consecutive double-digit growth to 5.6% in the second quarter, but remained confident that growth would improve from second-quarter levels.
The broker added that supply chain efficiency, improved product mix and higher-margin services are expected to support further gross margin improvement. Operating margin is expected to remain broadly stable, as gross margin expansion will be offset by a higher R&D expense ratio. According to management targets, JD Retail's long-term operating margin is expected to reach the high-single-digit level.
Regarding food delivery, the broker said healthy sequential order growth, lower subsidies and improved fulfillment efficiency led to a significant YoY narrowing in unit economics losses. Management expects losses in the third quarter to narrow significantly YoY and decline slightly QoQ. The broker maintained its Buy rating on JD-SW with a TP of HKD169. (ha/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-09-11 16:25.)