Investing.com — JD.com Inc is set to report stronger-than-expected fourth-quarter results, supported by robust sales growth in home appliances and electronics, alongside disciplined investment, according to JPMorgan.
The brokerage added JD (NASDAQ:JD).com to its positive catalyst watch, given potential upside to Q4 results and the company’s 2025 guidance.
JP Morgan forecasts JD’s Q4 revenue growth at 9.5% year-over-year, surpassing consensus estimates by 3%, with adjusted net profit projected to grow 13% year-over-year, 16% above consensus.
The anticipated growth stems from China’s government-backed trade-in program, which expanded to include more product categories and increased subsidies in 2025. Sales in electronics and home appliances, key segments for JD, likely grew by approximately 10% year-over-year in Q4, reflecting stronger-than-expected demand.
“As the demand in these categories will still be driven by government subsidies, we think JD can invest in general merchandise categories to maintain the growth without putting too much pressure on overall margins,” analyst said. Adjusted net margins is estimated at 2.8%, slightly higher than 2.7% a year ago.
JD is expected to benefit from RMB 300 billion in government subsidies for trade-ins in 2025, double the amount allocated in the latter half of 2024. JPMorgan predicts the company’s growth in electronics and home appliances will moderate in 2025 but remain above national retail sales trends.
JPMorgan reiterated its “Overweight” rating on JD.com, with a price target of $50, implying significant upside from current levels.
JD.com’s shares have declined 5% over the past month but are positioned to outperform in the next 3-6 months, the note added.
