Dahua Jixian: Maintains "Buy" rating on JD-SW (09618) with target price raised to HK$200.

Da Hua Jixian released a research report stating that it maintains a "buy" rating on JD-SW (09618) with a target price raised from 197 Hong Kong dollars to 200 Hong Kong dollars. JD.com has raised its revenue growth guidance for the fourth quarter of last year from 6% to 9%, to 333.8 billion yuan, faster than the 5% growth in the third quarter and ahead of the bank's expectations. The report states that JD.com's retail revenue growth in the quarter is expected to be faster than the company's overall growth. JD.com's retail operating profit guidance has been raised to 8.7 billion yuan, a 20% year-on-year increase, slightly slower than the gross transaction value growth, based on the faster growth of first-party sales gross transaction value than third-party sales. The bank points out that JD.com's strong growth in users and gross transaction value in the quarter is benefiting from the continued trade-in program, supporting JD.com's investment in user-centric strategies and supply chain efficiency to boost profit growth.