Institution: JD.com is expected to benefit from the trade-in subsidy and supply chain improvements

Morningstar's research report states that JD.com may benefit from China's years-long trade-in subsidy program and improvements in supply chain efficiency. This Chinese e-commerce giant could become a major beneficiary of consumer subsidy programs, as home appliances and electronic products contribute significantly to the company's revenue, accounting for 47% of third-quarter revenue. With the subsidy program expanding to mobile phone products this year, it may further boost JD.com's revenue. The subsidy program is expected to increase significantly this year compared to the RMB 35 billion to RMB 40 billion projected for 2024. The report notes that JD.com's stock price is undervalued, listing it as a preferred stock among Chinese e-commerce stocks