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<Research> Citi Raises JD.com, Inc. (JD.US) TP to USD39 on Narrowing Food Delivery Losses and Retail Growth Recovery in 2H26
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Citi issued a research report stating that JD.com, Inc. (JD.US) delivered 1Q26 results that beat expectations. The bank expects the home appliances and electronics segment to face a high base and the impact of price increases in 2Q26. However, management believes growth will re-accelerate in 2H26, mainly driven by sustained expansion in general merchandise and resilient advertising demand. Citi expects JD Retail's profit to remain stable YoY, supported by improved logistics efficiency across categories and enhanced marketing efficiency. At the group level, results are also expected to benefit from further narrowing losses in the food delivery business, although the international business Joybuy remains in the investment stage. Citi noted that JD.com's food delivery business continued to improve its unit economics in 1Q26. Management views food delivery as a long-term strategic asset that helps drive user growth and engagement, while generating cross-selling synergies. Therefore, the company prioritizes long-term development over short-term profitability. The international business Joybuy officially launched in Europe on March 16. The group is adopting a phased investment strategy and believes that as order volume increases, economies of scale will help reduce unit losses. Citi raised its non-GAAP net profit forecast for 2026 by 4.6% and lowered its 2027 forecast by 3.5%. Based on 12x 2026E P/E, the bank lifted its TP from USD36 to USD39 and maintained a Buy rating, citing attractive valuation, recovering earnings growth, strong execution and solid shareholder returns. (ad/u) Auto-translated by AI This article was automatically translated by AI, the original language 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. More Details
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