pokermultiplayer| China Merchants Securities: Raising Jingdong's target price to HK$169 is attractive
editor 2024-05-20 14:35:39 Home 19
China Merchants Securities issued a report stating thatpokermultiplayer, Jingdong's revenue growth in the first quarter shows recovery trendpokermultiplayer, strong profit performance pushed profits to exceed expectations by 20%. The Group is actively preparing for the 618 promotion and emphasizes providing differentiated value-added services to consumers. At the same time, policy support for home appliances and long-term real estate markets provides potential room for growth. The bank raised its target price for its H-shares from HK$142 to HK$169, believing that the valuation is attractive and that the potential shareholder return in the near future is higher than that of its peers.
Looking forward to the second quarter, we see two growth drivers, including the upcoming 618 promotion and the policy of replacing old appliances with new ones. The bank expects group revenue to grow 6.5 percent year-on-year in the second quarterpokermultiplayer.4%, JD's retail revenue increased by 5% year-on-yearpokermultiplayer.5%。
In terms of shareholder returns, the report stated that from January to May 15, JD has repurchased 49.2 million ADSs, with a total amount of US$1.3 billion, a decrease of approximately 1.8% of the number of outstanding shares. Its 3 billion repurchase plan as of March 2027 still has a repurchase amount of US$2.3 billion. If we assume that the repurchase plan is more concentrated on early execution, that is, US$2 billion will be executed in the next 12 months, the potential shareholder return (repurchase and cash dividend) is expected to reach approximately 6.7%, which is attractive among peers.