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JD-SW (09618.HK) Tests HKD100 After Seven-Day Losing Streak; Daiwa Downgrades to Hold, Cuts TP to HKD105
2026-06-24 10:54:06 JD-SW (09618.HK) extended its decline for a seventh consecutive trading day, opening down 0.19% today (24th). The stock once fell 4.1% to a low of HKD98.6. It is now trading at HKD100.2, down 2.53%, with turnover of 5.6495 million shares, involving HKD565 million. Daiwa said in a research report that it adjusted its forecasts for JD-SW in response to weaker-than-expected consumer market performance. Data from the National Bureau of Statistics for April to May showed soft online retail sales, particularly for home appliances and electronic products. Meanwhile, JD-SW's gross merchandise value (GMV) growth during the "618 Shopping Festival" was also weak, estimated to have recorded only low single-digit YoY growth. The broker expects macro headwinds and memory cost inflation to have a greater-than-expected impact, dragging electronic and home appliance sales into a prolonged downturn for fiscal years 2026 to 2028. As a result, it downgraded JD-SW's investment rating by two notches from Buy to Hold. Daiwa noted that the consumer market has weakened further since March, with YoY growth in online retail sales slowing from 8% in 1Q26 to 3% in April to May. The broker currently forecasts JD-SW's revenue to decline 4.6% YoY in 2Q26, including a 7.8% YoY drop in JD Retail revenue. However, it expects JD Retail's margin to remain stable, mainly supported by margin expansion from increased scale of general merchandise, advertising revenue growth and cost controls. Daiwa forecasts JD-SW's adjusted net profit for 2Q26 to reach RMB7.1 billion. In light of a weaker consumption outlook, Daiwa lowered its EPS forecasts for JD-SW for fiscal years 2026 to 2028 by 10% to 18%, and cut its Hong Kong-listed shares TP from HKD183 to HKD105. This is based on a reduction in JD Retail's target average EV/NOPAT multiple for fiscal years 2026 to 2027 from 6.5x to 3.0x, as well as the market value of JD LOGISTICS (02618.HK). (ad/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |