Is JD.com A Buy Ahead of Q3 24 Earnings on November 14?

🌟🌟🌟JD.com $JD.com(JD)$  is down almost 7% last Friday as the Chinese authorities latest stimulus plan fails to excite the market.   However JD has reported Double Digit Growth in sales during the current 2024 Singles Day Mid Festival which ends on November 11.

JD said on November 1 that its latest Singles Day Grand Promotion (also known as Double 11) recorded year on year double digit growth in transaction volume, orders and user numbers.  This is measured from October 14 to October 31 compared to the same period last year.

Midway through the shopping festival, over 16,000 brands achieved 300% year on year growth in transaction volume.  The number of brands exceeding RMB 100 million in sales increased by over 400% year on year.  More than 17,000 merchants saw their order volumes increase 5 times compared to last year.

This year's festival theme is "Affordability and Quality".  With JD.com "10 Billion yuan discount", the product selection increases more than 4 times, drawing a high volume of users.

Apparel and cosmetics saw a surge with new users rising over 140% year on year.  Supermarket orders also increased by more than 40%.  Consumer electronics and home appliances set new sales records while JD's livestream channel saw a 245% increase in orders year over year.

Electronics transaction volume led growth with transaction volumes for gaming laptops rising  by 120% year on year.  Products such as AI smartphones, 4K projectors experienced 100% growth in transaction volume.

Home appliances which include nearly 3000 home products surpassed RMB 1 billion in transaction volume year on year. 

The success of JD's Singles Festival will certainly boost JD's revenue.  JD has expanded overseas with JD's European brand Ochama launching a new automated warehouse in Poland, enabling 48 hour fulfilment across the country and same day delivery for some orders. 

JD Global sales has extended its services to Malaysia and Thailand, offering free shipping options.  US and Singapore based consumers led in international orders, with transaction volume rising by 50 times.  Small appliances, baby products and toys showed strong growth. 

JD Industrials' online procurement platform expanded product offerings by 3.3 times year on year.  JD IOU (Baitiao) saw 51% year on year increase, while credit card instalment payments rose by 118%. 

JD.com is firing on all cylinders.   In Q2 24, JD grew its diluted net income per American Depository Share by a massive 97.3% year over year to RMB 8.19 (USD 1.13).  JD has topped earnings per share for more than 15 consecutive quarters.   

JD has a rock solid balance sheet with USD 28.8 billion in cash and minimal debt.   JD also rewards its investors with dividends paid once a year in April. The current dividend yield is 1.92%.

 Wall Street Analysts are bullish on JD with a Buy rating, Average Target price of USD 48.11, an upside potential of 25% according to Tipranks. 

Is JD.com a Buy Ahead of its earnings on November 14?  That is a YES from me as I believe that JD.com has lots of exponential growth ahead. 

In the short term, there may be volatility  for JD.com.  However in the long term, I believe that JD.com is a winner. 

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