05:00 AM EDT, 05/17/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our target price of USD36 (from USD30) is an implied 2024 P/E of 14.5x (5-year mean: 31.1x), on projected ROE of 9%-10% (5-year mean: 14.3%). Q1 2024 revenue rose 7% Y/Y (JD Logistics: +15% on JD Retail's rising order volumes, more new clients, i.e., Miniso, and higher average revenue per customer; JD Retail: +7% on increased users and order volumes). Net margin rose 0.16 ppt to 2.74% on JD Logistics' improved margin (likely on better scale efficiency) and lower administrative expenses. These lifted earnings per ADS (EPADS) 14% Y/Y to CNY4.56, which was in line with our estimate. We think revenue growth will stay at about 2023's level in 2024/2025, led by JD Logistics on overseas business expansion and our projected higher demand for smart warehouses amid growing retail sales. Despite competition in the e-commerce/on-demand delivery space, we still expect better scale efficiency to drive net margin improvement to 2.5% in 2024/2025 (2023: 2.2%). We keep our 2024/2025 EPADS forecasts at CNY17.93/CNY18.65.