Latest news with #JD.com's
Time of India
3 days ago
- Business
- Time of India
JD.com looks to international market for growth
JD Logistics announced on Wednesday the launch of JoyExpress in Saudi Arabia , marking the first time the logistics arm of Chinese e-commerce giant will operate its own consumer-focused express delivery service abroad. Known for its self-built warehousing and delivery network in China, JD Logistics operates over 3,600 warehouses in its home country. JoyExpress extends this self-operated model overseas, and will offer delivery services as fast as the same-day in Saudi Arabia, according to JD Logistics. The expansion may mark the first step in renewed international push for growth, according to the company's founder and chairman Richard Liu . Growth at home has been harder to come by for e-commerce giants, as consumer confidence hit by China's protracted property crisis and wage growth concerns add to deflationary pressures. Liu held a sharing session in Beijing on Tuesday in which he emphasized the importance of the global market for future growth and a likely acceleration of the pace of its overseas forays in the near future. "We have been working in Europe for three years, and the logistics infrastructure there is now basically in place. However, it's still not enough," he said, according to local media reports. Liu described the past five years as "lost" for and emphasized the need for the company to compete with Chinese food delivery giant Meituan in new areas, ranging from food delivery to travel booking. JD launched JD Takeaway, a direct competitor to Meituan, earlier this year and Meituan has also expanded to Saudi Arabia in recent years. "It's really regrettable that in the past five years, hasn't introduced anything new. These past five years can be described as a period of decline for us," he said. Liu also revealed plans to apply for stablecoin licenses in major currency countries globally. The goal is to facilitate foreign exchange between global enterprises, reducing the cost of cross-border payments by 90% and increasing efficiency to within 10 seconds. Last year, the Hong Kong Monetary Authority (HKMA) announced that JINGDONG Coinlink Technology Hong Kong, a wholly-owned subsidiary of JD Technology, has joined its stablecoin issuer sandbox, which is a framework set up by the HKMA to convey regulatory expectations to institutions that are interested in issuing stablecoins in Hong Kong.
Yahoo
13-06-2025
- Business
- Yahoo
Here's Why We Think JD.com (NASDAQ:JD) Is Well Worth Watching
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away. So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like (NASDAQ:JD). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Over the last three years, has grown earnings per share (EPS) at as impressive rate from a relatively low point, resulting in a three year percentage growth rate that isn't particularly indicative of expected future performance. Thus, it makes sense to focus on more recent growth rates, instead. Impressively, EPS catapulted from CN¥15.94 to CN¥31.30, over the last year. Year on year growth of 96% is certainly a sight to behold. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. EBIT margins for remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 8.9% to CN¥1.2t. That's progress. In the chart below, you can see how the company has grown earnings and revenue, over time. Click on the chart to see the exact numbers. Check out our latest analysis for You don't drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for future profits. Owing to the size of we wouldn't expect insiders to hold a significant proportion of the company. But we do take comfort from the fact that they are investors in the company. Notably, they have an enviable stake in the company, worth CN¥5.5b. Investors will appreciate management having this amount of skin in the game as it shows their commitment to the company's future. earnings per share growth have been climbing higher at an appreciable rate. That sort of growth is nothing short of eye-catching, and the large investment held by insiders should certainly brighten the view of the company. At times fast EPS growth is a sign the business has reached an inflection point, so there's a potential opportunity to be had here. So based on this quick analysis, we do think it's worth considering for a spot on your watchlist. Of course, just because is growing does not mean it is undervalued. If you're wondering about the valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in the US with promising growth potential and insider confidence. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
23-05-2025
- Business
- Yahoo
Investors Will Want JD.com's (NASDAQ:JD) Growth In ROCE To Persist
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. Speaking of which, we noticed some great changes in (NASDAQ:JD) returns on capital, so let's have a look. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. The formula for this calculation on is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.11 = CN¥42b ÷ (CN¥678b - CN¥284b) (Based on the trailing twelve months to March 2025). Thus, has an ROCE of 11%. By itself that's a normal return on capital and it's in line with the industry's average returns of 11%. See our latest analysis for Above you can see how the current ROCE for compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for . is displaying some positive trends. The data shows that returns on capital have increased substantially over the last five years to 11%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 205%. So we're very much inspired by what we're seeing at thanks to its ability to profitably reinvest capital. On a separate but related note, it's important to know that has a current liabilities to total assets ratio of 42%, which we'd consider pretty high. This can bring about some risks because the company is basically operating with a rather large reliance on its suppliers or other sorts of short-term creditors. While it's not necessarily a bad thing, it can be beneficial if this ratio is lower. All in all, it's terrific to see that is reaping the rewards from prior investments and is growing its capital base. And since the stock has fallen 27% over the last five years, there might be an opportunity here. So researching this company further and determining whether or not these trends will continue seems justified. Before jumping to any conclusions though, we need to know what value we're getting for the current share price. That's where you can check out our that compares the share price and estimated value. While isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Times
22-05-2025
- Business
- Business Times
How JD.com intends to unseat China's takeout king
WHEN a young Beijing resident opened his front door to grab his takeout meal in April, he was shocked to see a billionaire on his doorstep. Richard Liu, the founder of e-commerce giant had just scooted through the Chinese capital's streets to personally deliver the meal as well as a clear message to the country's dominant takeout platforms — is going to shake things up. In the cutthroat world of internet platforms, friends can quickly turn into rivals. During a dinner with other top tech CEOs, Liu said to Wang Xing of Meituan, the country's dominant food delivery platform: 'Retail doesn't belong just to me or – anyone can do it. I have no right to complain. The same goes for food delivery.' With those words, he directly challenged Meituan's grip on China's US$82 billion food delivery market. Both players now promise to deliver orders within 30 minutes for distances up to 5 km, taking instant retail competition to new levels. Liu's publicity stunt marked aggressive entry into the business. Since the launch of JD Takeaway in February, the e-commerce giant has been courting merchants with zero-commission deals, winning over delivery riders by offering a comprehensive social security package, and attracting consumers through discount vouchers. In April, it announced a 10 billion yuan (S$1.82 billion) campaign to subsidise consumers and merchants. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up JD Takeaway's orders have grown so rapidly that the app once collapsed during peak lunch hours. Forty days after launch, daily orders exceeded 1 million. A little more than two months later, orders exceeded 10 million. Meituan – which receives an estimated 60 million orders each day, over 60 per cent of market share – was forced to respond. The same day announced it would make social security payments for its riders, Meituan also promised similar benefits for its full-time and regular part-time delivery riders starting in the second quarter. It also followed by promising 10 billion yuan to help restaurants. To gain public support, targeted two major issues that have long plagued the industry: violations of delivery riders' labour rights and the controversial 'choose one of two' practice, where platforms force merchants to exclusively use their services. In 2021, Meituan was fined 3.4 billion yuan for implementing such exclusivity requirements. Tensions between the two rivals intensified in April. Without specifically naming competitors, condemned the imposition of 'choose one of two' on delivery riders. On the same day, Meituan fired back with a statement accusing a rival of 'spreading rumors to attract online attention', without naming In the same month, Liu also criticised Meituan's high commission rates, claiming that food delivery 'net profit will not exceed 5 per cent', compared to Meituan's current rates of 6 per cent to 8 per cent. The heated rivalry between the duo – representing the most prominent head-to-head clash in China's tech sector in recent years – comes at a time when the whole industry is downsizing. It has sparked concerns about the companies' future growth and profitability, with both of their stock prices falling by about a quarter since mid-March. Seeking growth breakthroughs Market analysts saw move into takeout as a sign of its urgent search for new growth. The company's main e-commerce business weakened after becoming entangled in price wars during 2023. It has fallen to fourth place in China's domestic e-commerce market in terms of gross merchandise value, trailing Alibaba's Taobao and Tmall Group, discount platform Pinduoduo and ByteDance's Douyin. In 2023, revenue growth dropped to 3.7 per cent, from 9.9 per cent in the previous year. In 2024 annual revenue growth recovered to 6.8 per cent, benefiting from the government's trade-in policy for household appliances. ' benefited from home appliance subsidies in the second half of 2024, but this boost is not sustainable,' a senior executive from a non-e-commerce division told Caixin. sees food delivery as a strategic opportunity that meets Liu's internal criteria for new ventures: clear market pain points, operational feasibility, and financial sustainability. A person close to investor relations department said Liu emphasized these three points during internal training sessions. The company believes the food delivery sector has relatively fewer competitors and high commissions, making the opportunity attractive. It also views the move as feasible given its decade-long experience in instant retail. Lastly, the investment is seen as financially manageable, supporting the decision to expand into this space, according to the person's analysis. hopes to use high-frequency food delivery services to drive traffic to its lower-frequency e-commerce business. 'Instant retail is a natural extension of our core retail business, and food delivery is one of the high-frequency services within instant retail that can enrich user scenarios and enhance user stickiness and activity,' said Xu Ran, the CEO of and JD Retail, in a March conference call. Meanwhile, Meituan is attempting to expand from high-frequency food delivery traffic into non-food categories to squeeze more value out of its traffic. Competing on speed In April, Meituan responded to foray onto its turf with its instant retail brand 'Meituan Instashopping' that offers goods ranging from groceries and beverages to electronic and skincare products, with an official claim of an average 30-minute delivery time to directly challenge next-day delivery. In response, announced its instant delivery service for a wide range of goods including fashion items, cosmetics, electronic products and medicine, boasting delivery in less than 30 minutes. Meituan does not see JD Takeaway as a threat as its 'order volume isn't seen as large enough,' a source familiar with the food delivery giant told Caixin. 'The counterattack is focused on the instant shopping element.' Instant retail represents a larger market than food delivery. According to the Ministry of Commerce, the instant retail market will grow by 29 per cent annually to exceed 2 trillion yuan by 2030. The key to Meituan Instashopping's supply and order growth is its 'flash warehouses' – small storage spaces placed in neighbourhoods. The company plans to set up 100,000 of them by the end of 2027. This model cuts costs by choosing cheaper store locations and only stocking the best-selling items, according to TF Securities analysts. Wang Puzhong, the CEO of Meituan's core local commerce business, said in April that Meituan now receives over 18 million non-food delivery orders daily and vowed to 'sweep those oversized, inefficient warehouse-delivery systems into the dustbin of history'. ' faces challenges in all four aspects: more, faster, better, cheaper,' an internet industry insider told Caixin, explaining that it cannot match Taobao and Tmall in variety or Pinduoduo in pricing, while its logistics business is being challenged by Meituan's Instashopping in speed. High-risk move? China's food delivery market has stabilised following price wars. According to 2024 data from Bocom International, Meituan has a 65 per cent market share, while Alibaba's holds 33 per cent, leaving all other platforms combined with just 2 per cent of the market. Market penetration has largely plateaued, leaving limited room for further user growth. SDIC Securities reported in April that expansion has notably slowed, with food delivery consistently accounting for around 25 per cent of total restaurant sales over the past three years. An analyst from an international hedge fund emphasized that for to establish a sustainable food delivery business, it must achieve significant order volumes to be profitable, and delivery algorithms require substantial data to optimize effectively. 'Once subsidies end, companies compete on operations, supply, and fulfillment efficiency,' a mid-level executive at told Caixin. 'Currently, supply focuses on chain restaurants, making it difficult to expand into the small restaurant segment without dedicated field teams.' For however, profitability may not be the sole success metric for its food delivery venture. The executive noted that even if traffic and orders decline, an increase in app daily active users would justify the investment from a medium-to-long-term strategic perspective. There appears to be a boost in engagement on app since its food delivery launch. Daily active users rose from 115 million the day the service came online on Feb 11 to 151 million by April 26, peaking at 160 million on April 22 amid media attention and founder Liu's delivery stunt, according to data from QuestMobile. Average daily usage time and app opens per user also saw modest increases during the period. The person close to investor relations department similarly indicated that achieving tens of millions of daily food delivery orders would not, in isolation, constitute success. The more critical factor is whether the food delivery service generates spillover effects that boost sales on JD's main platform. 'Platform companies invariably maintain a portfolio that includes both profitable and unprofitable business lines, as well as high-traffic and low-traffic segments,' the person added. CAIXIN GLOBAL
Yahoo
19-05-2025
- Business
- Yahoo
Is Weakness In JD.com, Inc. (NASDAQ:JD) Stock A Sign That The Market Could be Wrong Given Its Strong Financial Prospects?
With its stock down 14% over the past three months, it is easy to disregard (NASDAQ:JD). However, stock prices are usually driven by a company's financial performance over the long term, which in this case looks quite promising. Particularly, we will be paying attention to ROE today. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Put another way, it reveals the company's success at turning shareholder investments into profits. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for is: 16% = CN¥49b ÷ CN¥309b (Based on the trailing twelve months to March 2025). The 'return' refers to a company's earnings over the last year. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.16. See our latest analysis for So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. To start with, ROE looks acceptable. Even when compared to the industry average of 17% the company's ROE looks quite decent. Consequently, this likely laid the ground for the decent growth of 8.6% seen over the past five years by We then compared net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 19% in the same 5-year period, which is a bit concerning. Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if is trading on a high P/E or a low P/E, relative to its industry. has a healthy combination of a moderate three-year median payout ratio of 31% (or a retention ratio of 69%) and a respectable amount of growth in earnings as we saw above, meaning that the company has been making efficient use of its profits. Along with seeing a growth in earnings, only recently started paying dividends. Its quite possible that the company was looking to impress its shareholders. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 21% over the next three years. However, the company's ROE is not expected to change by much despite the lower expected payout ratio. On the whole, we feel that performance has been quite good. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a respectable growth in its earnings. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
