JD 3Q22 Core Earnings Surged 99%, Above Expectations

diggydog
2022-11-21

$JD-SW(09618)$  announced its 3Q22 results on 18 Nov after HK market close. Revenue increased by 11% y-o-y to RMB 244 billion, in line with market expectations. Segment wise, JD retail and JD logistics revenue increased by 7% and 39%, respectively.

Non-GAAP net profit increased by 99% to RRMB 10bn, above market expectations of RMB 7bn.

As for Cash Flow, JD has outstanding cash conversion cycle results in operating cashf low greater than net profit as you see on the table and chart below.

Annual active customer accounts increased by 7% y-o-y to 589m by the end of Sep 2022.

The outperformance of earnings growth was mainly driven by better-than-expected operating efficiency of JD retail and new business.

The operating margin of JD retail increased by 1.2ppt to 5.2%, while new business operating margin turned positive in 3Q22, at 5.5%. JD is expected to continue to outperform the industry and deliver solid earnings growth in 4Q22.

Modified in.2022-11-21
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Comments

  • ElvisMarner
    2022-11-23
    ElvisMarner
    It seems that the logistics sector contributes a lot to JD-SW.
  • HilaryWilde
    2022-11-23
    HilaryWilde
    I'm pleased with the revenue growth at JD-SW.
  • Wgey
    2022-11-22
    Wgey
    strong company affected by sentiment
  • MortimerDodd
    2022-11-23
    MortimerDodd
    I didn't expect JD-SW's profit margin to rise to 5 percent.
  • DonnaMay
    2022-11-23
    DonnaMay
    Active users are growing all the time, which is great.
  • Maria_yy
    2022-11-23
    Maria_yy
    JD-SW's cash flow is not so good.
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