JD Industrial (07618) saw its shares rise more than 5% during the trading session. At the time of writing, the stock was up 4.67%, trading at HK$14.34, with a turnover of HK$41.20 million.
Recently, JD Industrial signed a strategic cooperation agreement with Shenzhen Senior Technology. The two parties will engage in deep collaboration across areas such as expanding digital technology platforms and digital solutions, as well as global procurement for MRO and spare parts materials. They will also work together to advance product standardization, shared supply chain inventory, integrated supply chain assurance solutions, and the development of overseas procurement platforms. The combination of Senior Technology's multi-localized overseas production layout and JD Industrial's global supply chain system is expected to efficiently meet the production and supply needs of new energy manufacturing companies abroad.
CLSA released a research report maintaining its target price of HK$21 for JD Industrial and reaffirming its "outperform" rating. JD Industrial reported a 17.4% year-on-year increase in revenue to RMB 24 billion last year, meeting expectations. Gross merchandise volume (GMV) rose 16.5% year-on-year to RMB 33.5 billion, while gross profit margin expanded by 1.2 percentage points to 17.4%. This improvement was mainly driven by increased direct procurement from upstream suppliers and economies of scale. The net profit margin under International Financial Reporting Standards stood at 4.7%.
The report noted that, supported by strong growth momentum from key clients and AI-driven operational efficiency improvements, revenue is expected to accelerate in fiscal years 2026 and 2027. Additionally, fulfillment optimization, high-margin products, and overseas expansion are identified as key factors that will drive the company's long-term profitability.
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