To The Moon

Just now, JD.com $JD.com(JD)$ $JD-SW(09618)$ announced the second quarter report, and the stock price fell more than 5% before the market:

However, compared with analyst expectations, JD.com 's revenue and operating profit in the second quarter exceeded expectations. Since it is so "beautiful", why do investors flock out?

The answer is its core business no improvement!

First, let's take a look at the overall income. JD.com 's revenue in the second quarter was 287.9 billion yuan, an increase of 7.6% over the same period last year, exceeding analysts' expectations of 279.1 billion yuan:

In terms of growth, although the 7.6% growth rate is much dimmer than the previous growth of more than 20%, it has at least ushered in a turning point and stopped the downward trend.

However, it is not the core retail business that is driving growth, but logistics.

JD.com 's retail revenue in the second quarter was 253.28 billion yuan, up 4.9% from the same period last year, lower than the 7.6% growth rate of total revenue:

JD.com 's revenue was greatly affected by the pandemic in Shanghai in the second quarter of last year. Considering that JD.com launched a high-profile subsidy in March this year and achieved a growth rate of only 4.9% under a fierce offensive, I don't know if it is in line with analysts' expectations, but at least investors are extremely disappointed.

Further subdivide JD.com 's retail, and find that some of the business is more terrifying. For example, the daily commodity revenue of the second quarter is 81.7 billion yuan, down 8.6% from the same period last year!

Revenue from the traditional advantage business of electronic products and home appliances was 152.1 billion yuan, an increase of 11.4% over the same period last year, or due to 10 billion yuan in subsidies. After all, electronic products are most suitable for price war.

The fastest growing is the logistics business, with revenue of 41 billion yuan in the second quarter, a year-on-year increase of 31.2%:

The core business is not as good as expected in terms of revenue, and the profit end is hip-pulling.

Still looking at the whole, JD.com 's operating profit in the second quarter was 8.27 billion yuan, a year-on-year increase of 120%, exceeding analysts' expectations of 6.89 billion yuan:

JD.com's profitability has increased significantly, it seems that it should be excited, but in fact, the way to improve profits is to reduce costs and increase efficiency.For example, management expenses in the second quarter was 2.358 billion yuan, an increase of only 1.5% over the same period last year; R&D expenses was 4.07 billion yuan, an increase of only 1% over the same period last year; Of the three expenses, only sales expenses have increased by 16.7%.

Looking at operating profit by business, the core JD.com Retail, operating profit in the second quarter was 8.14 billion yuan, a slight decline from 8.17 billion yuan in the same period last year:

The operating profit of the new business rose sharply to 1.06 billion yuan in the second quarter, mainly due to a profit of 1 billion yuan from the sale of properties; logistics made a profit of 510 million yuan in the second quarter, turning a loss into a profit.

Obviously, JD.com Retail, regardless of revenue growth or operating profits, the second quarter is very dismal.

At this point, the mystery that JD.com 's share price fell by more than 5% after the announcement of the financial results was revealed. Generally speaking, put aside the expectations of analysts, JD.com 's current situation is not good!