CMSC: Maintain "buy" rating on JD-SW (09618), raise target price to HK$209.

CMSC released a research report stating that it maintains a "buy" rating on JD-SW (09618) and has raised its H-share target price from 179 Hong Kong dollars to 209 Hong Kong dollars. JD Group's fourth quarter revenue increased by 13% year-on-year to 347 billion yuan, exceeding the bank's expectations, with JD Retail revenue increasing by 15% year-on-year. Gross profit margin increased by 22% year-on-year, benefiting from a 1.1 percentage point increase in profit margin to 15.3%, and non-GAAP net profit increased by 34% year-on-year, exceeding the bank's expectations. The bank forecasts that the group's revenue will increase by 9.2% year-on-year this year, with JD Retail and JD Logistics (02618) revenue increasing by 8.3% and 11.3% respectively. The bank maintains a double-digit optimistic outlook for the group's revenue growth in the first half of the year, mainly because the group is the main beneficiary of China's subsidy policy extension, enhancing its strong supply chain and consumer recognition of electronic brand products. The group is expected to increase its non-GAAP net profit by 8.7% year-on-year to 52 billion yuan this year.