JD Logistics: Powering JD Retail And Global Expansion

2025-05-20 08:10:00 ET

Summary

• JD Logistics delivered solid 1Q25 results, benefiting from China's demand-stimulating policies and JD's strong ecommerce performance, especially in electronics and home appliances.
• Integrated supply chain (ISC) revenue and external customer growth highlight JDL's unique value proposition, with margin pressure offset by scale and service expansion.
• Valuation remains attractive at 0.26x forward revenue, with 30% upside to HK$15.26/share justified by peer comparisons and JD's ongoing ecommerce momentum.
• International expansion provides an appealing growth catalyst, positioning JDL for long-term upside beyond near-term events like the 618 shopping festival.

JD Logistics ( OTCPK:JDLGF ) gave its 1Q25 operational update with revenue and adjusted EPS largely in line with consensus as JDL’s 1P integrated supply chain revenue continues to ride on the back of positive tailwind from JD, which is a key beneficiary of China’s focus on stimulating demand through trade-in programs and national subsidies (see: JD.com: Upgrading To Buy On Government Subsidy Tailwinds Driving Growth )....

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