Huatai Securities released a report, estimating JD.com (JD.US)      's total revenue for 1Q to increase by 6.4% YoY to RMB258.3 billion, with JD's retail segment revenue increasing by 6.5% YoY to RMB226.2 billion. Gross merchandise volume is expected to grow by 9% YoY. Meanwhile, JD Retail's operating margin is expected to be 3.7%, down YoY.

According to Huatai, JD Retail has gradually recovered from the impact of business adjustments, and its fundamentals are steadily recovering with the help of strategic initiatives such as the third-party open ecosystem and low-priced mindset. Looking ahead to this year, the broker believed that competition in the e-commerce sector is likely to remain intense, and that JD will need to continue to focus on improving the breadth of its inventory supply and the depth of its supply chain to lay the groundwork, so as to drive growth in the number of active buyers and build a stronger user mindset.

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Huatai maintained its non-GAAP net profit forecast on JD at RMB36.5 billion, RMB45.2 billion and RMB52.5 billion for 2024/25/26 respectively. The broker's target price for JD's US shares has been slightly revised to US$44.67 from US$44.97, with a Buy rating.

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