Login

JD.com Inc Adr

Recommendation: Buy

Entry Date Symbol Recommendation Entry Price (USD) Target 1 (USD) Target 2 (USD) Holding Duration Potential Upside
6 Dec, 24 JD Buy USD 36.41 USD 39.0 USD 41.4 3 days 13.7%

Fundamentals

  • Previous Close 36.44
  • Market Cap46535.28M
  • Volume3700675
  • P/E Ratio13.57
  • Dividend Yield2.51%
  • EBITDA39204.00M
  • Revenue TTM1101755.06M
  • Revenue Per Share TTM701.52
  • Gross Profit TTM 84062.00M
  • Diluted EPS TTM2.23

Data Powered by EOD Historical Data (“EODHD”).

Company Overview

JD.com, Inc. operates as a supply chain-based technology and service provider in the People's Republic of China. The company offers computers, communication, and consumer electronics products, as well as home appliances; and general merchandise products comprising food, beverage and fresh produce, baby and maternity products, furniture and household goods, cosmetics and other personal care items, pharmaceutical and healthcare products, industrial products, books, automobile accessories, apparel and footwear, bags, and jewelry. It also provides online marketplace services for third-party merchants; marketing services; and omni-channel solutions to customers and offline retailers, as well as online healthcare services. In addition, the company develops, owns, and manages its logistics facilities and other real estate properties to support third parties; offers asset management services and integrated service platform; leasing of storage facilities and related management services; and engages in online retail business. Further, it provides integrated data, technology, business, and user management industry solutions to support the digitization of enterprises and institutions; and technology-driven supply chain solutions and logistics services. The company was formerly known as 360buy Jingdong Inc. and changed its name to JD.com, Inc. in January 2014. JD.com, Inc. was incorporated in 2006 and is headquartered in Beijing, the People's Republic of China.

Key Positives

Share Repurchase: The company repurchased 8.1% of its shares for US$3.6 billion in 2024 and launched a new US$5.0 billion buyback program.

Revenue and Profit Growth: JD.com’s net revenues rose 5.1% year-over-year to RMB260.4 billion (US$137.1 billion), and net income increased by 47.8% to RMB11.7 billion (US$1.7 billion)

Key Negatives

Higher Expenses: Marketing expenses rose by 25.7% to RMB10.0 billion (US$1.4 billion), and fulfillment costs increased by 6.9% to RMB16.3 billion (US$2.3 billion)

Decline in Cash Flow: Operating cash flow fell to RMB6.2 billion (US$0.9 billion) in Q3 2024 due to changes in payment schedules and inventory purchases.

Key Investment Risks

JD.com faces risks related to fluctuating cash flow, increased operational costs, and potential market volatility due to its heavy investment in marketing, fulfillment, and share repurchase programs.

Recommendation Summary

Technical Summary

Entry Price Support* Target 1 Target 2
36.41 32.77 39.0 41.4

Data Source: REFINITIV, Analysis: StockNextt

*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.

Key Reasons for Buy

Price Action Analysis (on the daily chart)

The share price of JD is trading close to important support levels, indicating the possibility of short-term gains. As the stock progresses upward, it is expected to face a significant resistance level at USD 42.04, which could be approached in the near term, likely within the next 2-4 weeks. If the stock successfully breaches this level, it could lead to further buying momentum and potentially extended gains in the stock.

Technical Indicators Analysis (On the daily chart)

On the daily chart, the 14-period Relative Strength Index (RSI) is moving above the midpoint, indicating a positive bias. Furthermore, the stock price moving above its 21-day Simple Moving Average (SMA), supporting positive bias.

As per the above-mentioned price action and technical indicators analysis, JD. Com Inc (NASDAQ: JD) is looking technically well-placed on the chart, and a ‘Buy’ recommendation has been given on the stock. Investment decision should be made depending on an individual’s appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report. The summary of recommendation is as follows:

Key Financials in Pictures

Income Statement

Balance Sheet

Change in Cash

Total Operating Cash

Dividends Paid

Data Powered by EOD Historical Data (“EODHD”).

Peer Comparison

Sector: Consumer Cyclical Industry: Internet Retail

Company Change (USD) Price (USD) Trailing PE (x) Forward PE (x) Price Sales TTM (x) Price to Book Value (x) Enterprise Value to Revenue (x) Enterprise Value to EBITDA (x)
JD
JD.com Inc Adr
-0.24 0.66% 36.20 13.57 8.00 0.04 1.24 0.02 0.70
AMZN
Amazon.com Inc
4.18 1.90% 224.70 50.46 44.05 3.37 9.59 3.45 22.21
BABAF
Alibaba Group Holding Ltd
-1.78 14.83% 10.22 19.26 8.76 1.58 1.54 1.36 8.84
PDD
PDD Holdings Inc.
-0.68 0.67% 100.67 20.54 13.26 0.62 5.93 0.50 1.74
BABA
Alibaba Group Holding Ltd
-0.495 0.58% 84.50 10.59 7.29 0.21 1.28 0.14 0.91

Data Powered by EOD Historical Data (“EODHD”).

Disclosures:

Related Risks: This report may be looked at from a high-risk perspective and recommendations are provided for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is December 05, 2024. The reference data in this report has been partly sourced from REFINITIV.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Copyright © 2023 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.