Rating Quick Look | JD, Baidu, Tencent, Nio! Target prices all raised!

Credit Suisse: Maintains "Buy" rating on JD.com-SW, raises target price from HKD 147 to HKD 161

The report states that the company's first-quarter revenue met expectations, while non-GAAP profit exceeded expectations. Management mentioned that user numbers and shopping frequency are showing steady growth trends. The bank believes that the group's deepening strategies on the e-commerce platform have improved the user experience for paid users, which is a key driver for improving GMV and profitability.

UBS: Raises JD.com's US stock target price from $37 to $40, maintains "Buy" rating

The report points out that JD.com's first-quarter performance exceeded expectations, with revenue growing by 7% year-on-year, in line with expectations. Adjusted net profit increased by 17% year-on-year to RMB 8.9 billion, surpassing expectations by 19%, mainly due to strong gross profit in JD Retail and the turnaround to profit in JD Logistics.

The bank expects JD.com's first-quarter Gross Merchandise Volume (GMV) to achieve double-digit growth, remaining strong in April. By business segment, the highlight of the first quarter was the department store goods business, with an accelerated year-on-year growth rate of 8.6%. The bank believes that this strong momentum will continue. The outlook for electronic products business remains mixed, as demand for mobile phones and home appliances is resilient, but partially offset by weak demand for personal computers.

BOC International: Raises Baidu's target price to $169.87, reiterates "Buy" rating

The report indicates that Baidu's first-quarter profit increased by 22% year-on-year, exceeding the market's expectation of 27.4%, while revenue increased by 1% year-on-year, in line with market expectations. In addition, the AI-driven group continues to grow, with the company launching a new 2B AI toolbox for its MaaS platform, stimulating the use of AI Agents and LLM sub-models, leading to a faster growth in AI cloud revenue, up 12% year-on-year.

Haitong International: Raises Tencent's target price from HKD 430 to HKD 464, maintains "Outperform" rating

The report states that Tencent's first-quarter revenue met expectations, mainly driven by strong advertising revenue. Adjusted net profit exceeded expectations by 17%; net profit margin exceeded expectations by 4 percentage points. Both domestic and overseas game revenues saw year-on-year growth.

Looking ahead to the second quarter, the bank expects Tencent's game business structure to continue to improve, with delayed confirmations from the first quarter continuing to benefit game revenue. Additionally, "Dungeon & Fighter" will go live on May 21st, driving an increase in revenue contribution.

Therefore, the bank expects the game business to recover in the second quarter and accelerate growth in the second half of the year. It is expected that game revenue for the second quarter and fiscal year 2024 will be RMB 46 billion and RMB 190.6 billion, respectively, representing a year-on-year increase of 3% and 6%.

The bank mentioned that the group's gross profit margin is expanding, and new high-profit businesses will continue to drive high-quality growth. It is expected that the group's adjusted net profit for the second quarter and full year will be RMB 47.6 billion and RMB 201.5 billion, respectively, representing a year-on-year increase of 27% and 28%, with net profit margins of 29.5% and 30.5%, respectively.

CICC: Raises Nio-SW's target price to HKD 59.88, upgrades rating to "Buy"

The bank believes that Nio + Leda's monthly sales volume next year is expected to maintain a steady level of 25,000-30,000 units, which is conducive to valuation repair The report stated that Nio launched a sub-brand, LeDao, last night, with its first model L60 positioned as a smart electric SUV for household use, with deliveries starting in September. The presale price is RMB 219,900. The bank believes that the presale price is lower than expected, estimating the L60 BOM cost to be around RMB 140,000. Generally, the final market price will be 5,000 to 10,000 lower than the presale price. At the same time, the official pricing for the BaaS (Battery as a Service) scheme has not been announced yet, and the final BaaS scheme will have a significant impact on sales.

The bank believes that the LeDao L60 offers a unique recharging experience, including slow charging, fast charging, and battery swapping. The recharging experience is the biggest differentiating feature of the LeDao L60 under 200,000 RMB. It is predicted that the stable monthly sales volume will be between 9,000 to 10,000 units, making it a key driver for Nio's sales to enter the second growth curve