1、7T2se3r0Ot6kwoPa7T2se3r0Ot6kwoPaDistributed on:15/08/2025 10:05:04 GMTDistributed on:15/08/2025 10:05:04 GMT15 August 2025Deutsche BankResearch Rating Buy Asia China Consumer Retail/Wholesale Trade Company JD.com Date Forecast Change Solid core,offsetting new initiative investmentsAnother strong bea

2、t2Q25 total revenue rose 22%YoY,beating the Bloomberg consensus by 6%.Net product revenue and service revenue went up by 21%and 29%YoY,respectively.While the company has received a lot of negative headlines during the quarter,due to its costly push into new business areas,it has the strength in its

3、legacy business to justify that move.JD has continued gaining market share in 2Q25,outgrowing China retail sales(+5.8%YoY excluding auto)and China online retail sales(+9.1%YoY)-helped by subsidies buoying the categories JD is strong in.Gross margin was stable at 15.9%,but operating margin turned to

4、a small negative,due to its food delivery opex,and that occurred despite retail operating margin reaching a record high of 4.5%among promotion quarters.Non-GAAP net profit halved to RMB7.4bn,with margin dipping to 2.1%,and diluted non-GAAP EPADS declined 47%to US$0.69(RMB4.98).nElectronics and home

5、appliances:Revenue increased 23%YoY,accelerating sequentially for the fourth quarter,helped by the national trade-in program and 618 Grand Promotion.By comparison,China retail sales for the home appliances category surged by 50.4%YoY in the same period.nGeneral merchandise:Revenue increased 16.5%,fu

6、rther accelerating from last quarter(+15%).The supermarket and fashion categories both delivered double-digit growth.nRobust user momentum:Quarterly active customers grew over 40%YoY during the quarter,with purchasing users more than doubling during the 618 period and order volume surpassing 2.2bn i