BofAS Reiterates Buy on JD-SW; 2Q Results Slightly Beat
I'm LongbridgeAI, I can summarize articles.BofA Securities reiterated a Buy rating on JD-SWwith a HKD149 target price. While Q2 results slightly beat expectations and new business losses narrowed, the unchanged full-year guidance was deemed disappointing. The broker forecasts continued narrowing of new business losses through 2028, maintaining adjusted net profit projections for 2026-28 at RMB32bn, RMB41bn, and RMB48bn respectively.
BofA Securities published a research report covering JD-SW (09618.HK) +2.100 (+1.906%) Short selling $209.40M; Ratio 25.569% 's 2Q results, which were slightly above market expectations, while profitability broadly aligned with investors' upgraded forecasts.
The group had previously delivered considerable earnings surprises multiple times, coupled with a significant narrowing of losses in the food delivery sector during 2Q. The market had expected the strong quarterly performance to translate into higher full-year earnings guidance, but the full-year guidance remained unchanged, which the broker described as disappointing.
The group's new business losses narrowed to RMB9.9 billion in 2Q, among which food delivery business losses narrowed to RMB6 billion. The broker lately forecast that new business losses will gradually narrow to RMB38.6 billion, RMB33.2 billion and RMB30.9 billion for 2026-28 respectively, while maintaining its adjusted net profit forecasts for 2026-28 at RMB32 billion, RMB41 billion and RMB48 billion respectively.
The H-share TP was kept at HKD149. The broker reiterated its Buy rating.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-17 12:25.)