HK Stock Market Move | JD-SW(09618) opens over 4% higher with the launch of the gift function on the app. The company is expected to significantly benefit from national subsidy policies.

JD-SW (09618) opened more than 4% higher, rose 4.02% as of the time of publication, to 152.6 Hong Kong dollars, with a turnover of 1 billion Hong Kong dollars. On the news front, JD.com has launched a "gift giving" feature in its latest version of the app, which is seamlessly integrated with WeChat. JD.com has also introduced the fun feature of "group gift giving", where users can choose to buy multiple gifts at once and send them packaged to a WeChat group, with group members being able to randomly receive different gifts. In addition, on January 20, subsidies for new purchases of digital products such as mobile phones were implemented on JD.com. Guosen's recent research report pointed out that the government subsidy policy for trading in old for new products will continue to expand and strengthen until 2025, and JD.com is expected to significantly benefit from policy support. China Securities Co., Ltd. forecasts that JD.com's revenue in Q4 2024 will increase by 9.5% year-on-year to 335.1 billion yuan, with non-GAAP net profit of 10.1 billion yuan, corresponding to a net profit margin of 3.02%, compared to 2.75% in the same period the previous year. Benefiting from the government subsidy policy, the growth rate of electric products this quarter has significantly improved compared to the previous period and exceeded that of Suning.com, with home appliances and computers growing faster than mobile phones. In terms of profit, despite the increase in sales expenses during the peak season, the profit margins for home appliances, PCs, and other first party products have improved significantly due to the promotion of the old-for-new policy. Looking ahead to 2025, it is expected that the government subsidy policy will continue, offline channels will be further connected, and with revenue growth exceeding social zero growth, it is expected that profit margins will continue to improve through increased supply chain efficiency.