JD.com Inc

JD.com had a successful year in 2022, achieving high-quality growth and surpassing 1 trillion RMB in full-year revenues for the first time. Despite external challenges, the company was able to maintain high-quality operations and record the highest-ever profitability for the year. The retail industry and external environment are undergoing profound changes due to demographics, macroeconomic trends, and changes in customers’ lifestyles and preferences, leading to the increasing diversification of consumer demand and consumption scenarios. JD.com has been agile and determined in adapting to these changes. In 2022, the company implemented strategic realignments aimed at achieving healthy and sustainable growth, such as pulling back new businesses that could not develop efficient business models, had inadequate synergies with core businesses, or could not attain satisfactory economies of scale. JD.com’s priority is putting consumers’ needs first by improving their products, prices, and services. The company is expanding its supply chain capabilities, reducing costs, and offering consistent everyday low prices to meet the needs of diverse customer demands. We give the company a ‘Hold’ rating with a revised target price.