[ET Net News Agency, 5 January 2021] Jefferies Research reinstated coverage on JD.com,
Inc. (09618) with a "buy" rating and a target price of HK$426.
The research house expects that JD to pursue a disciplined approach in spending backed
by ROI- focused strategies. Jefferies reaffirmed its positive outlook on JD with a proven
business model based on the best price and service strategy.
In December 2020, JD announced investments in Xingsheng and China Dili, as well as
exploring spin-off of cloud and AI to JD Digits and appointment of new CEO of JD Logistics
to capture future opportunities.
Jefferies estimated its 4Q 2020 revenue to grow 27% to about RMB217bn and Non-GAAP net
profit of about RMB1.5bn with non-GAAP net margin to reach 0.7%. (KL)