CICC: Raised JD-SW (09618) 2025 adjusted net profit forecast by 1.8% to 27.5 billion RMB, maintaining "outperform industry" rating.

CICC released a research report stating that it predicts that JD.com, Inc. Sponsored ADR Class A group (09618, JD.US) will achieve a 14% year-on-year increase in revenue in the third quarter to 297.1 billion RMB, which is higher than the bank's previous expectations, corresponding to a non-GAAP net profit margin of 1.5%. CICC raised its adjusted net profit forecast for JD.com, Inc. Sponsored ADR Class A in 2025 to 27.5 billion RMB and maintained its profit forecast for 2026 at 38.4 billion RMB; it also maintained its "outperform industry" investment rating and a target price of $41, which corresponds to an 11 times adjusted price-earnings ratio in 2026 and a 28.7% upside; the current stock price corresponds to a 12/8 times adjusted price-earnings ratio in 2025/26. CICC expects that JD.com, Inc. Sponsored ADR Class A's daily category in the third quarter will continue to maintain rapid growth, with solid retail business profit margins and better-than-expected delivery services, which may drive third-quarter net profit higher than previously expected.