Daiwa: Upgrades JD Group-SW (09618.HK) target price to HKD 120; Joybuy as a potential driver for the next phase of growth.

Zhihua Finance APP learned that Daiwa released a research report stating that JD Group-SW (09618.HK) adjusted net profit for the second quarter exceeded expectations by 12%. The rating is maintained at "Hold," and the target price has been raised from HKD 108 to HKD 120, primarily based on the sum-of-the-parts valuation method. In response to improved growth prospects, the target valuation multiple for JD Retail has been adjusted from 3x to 3.5x, factoring in the market value of JD Logistics (02618.HK). The firm believes that whether consumption improves or weakens is a key factor affecting the sales growth of its self-operated business, and new businesses are expected to become a long-term growth driver for the group.