LX - Market Value Of JD's Non-Consolidated Equity Stakes Reveals Extreme Mispricing
JD.com (JD) is China’s largest online retailer by revenue, largest retailer overall, and second-largest e-commerce company. JD is well-positioned because China’s economy has long-term growth tailwinds as its 1.4 billion people become increasingly affluent. China’s total retail market grew 11% annually between 2012 and 2017, while online retail’s share of total retail sales has grown from 6% to 18%. This drove the online retail market to grow 38% annually over this period. But JD has performed even better, having grown revenues at a blistering 54% annual rate. Importantly, China’s economy should still grow