HSBC Analysts Highlight JD.com's Retail Profit Margin Expansion

HSBC analysts stated in a research report on May 13 that the expansion of retail profit margins was the main driver behind JD.com's better-than-expected first-quarter earnings. According to Jin10, the analysts noted that the continuous improvement in JD.com's retail profit margins and the narrowing losses in its food delivery business will enhance market visibility regarding its profit recovery in 2026. The analysts also mentioned that due to the high base formed by government subsidies boosting electronics sales last year, revenue growth in the second quarter might be constrained. However, as the comparison base becomes more favorable and categories like healthcare and daily necessities show more resilience, growth is expected to pick up in the second half of the year. HSBC maintains a 'buy' rating on the stock and has raised the target price from $35 to $37.