Hot off the press | Positive reviews after performance! JD.com and Li Auto's target prices both raised!

Morgan Stanley: JD.com-SW rated "outperform" with target price raised to HKD 207

If calculated based on the latest closing price of HKD 144.8, this price implies a 43% upside potential!

The bank expects JD.com's Q2 revenue to increase by 5% YoY, with JD.com's retail revenue increasing by 1% YoY and GMV trending faster, increasing by 7% YoY. Considering the upcoming 618 promotion and the comprehensive impact of ongoing cost optimization work, it is expected that its adjusted net profit will reach RMB 6.8 billion, with an adjusted net profit margin of 2.4%.

Morgan Stanley: LI AUTO-W rated "outperform" with target price raised to HKD 133.9

If calculated based on the latest closing price of HKD 114.1, this price implies a 17% upside potential!

The bank raised Li Auto's 2023/24 net profit forecast by 199%/16% to RMB 4.353/5.239 billion, reflecting the upward revision of sales volume, revenue, and gross profit margin forecasts, as well as the downward revision of operating expense ratio forecasts, and believes that the market will have a positive response to Q1 performance.

The company's Q1 sales met the bank's expectations, with a net profit of RMB 930 million, exceeding expectations, mainly due to the reduction in operating expenses. The delivery guidance of 300,000 vehicles this year is also higher than market expectations, implying a YoY growth of 125%.

Nomura: JD Health rated "buy" with target price of HKD 87

If calculated based on the latest closing price of HKD 53, this price implies a 64% upside potential!

The bank stated that JD Health's Q1 performance was solid, with revenue up 54% YoY, far exceeding the bank's expected YoY increase of 45%, and non-GAAP operating profit improving by 2.1 percentage points YoY to 8.3%, showing strong performance. In terms of user indicators, its annual active buyers increased by 3.5% MoM to 160 million.

Nomura: JD.com rated "buy" with target price of HKD 17

If calculated based on the latest closing price of HKD 13.16, this price implies a 29% upside potential!

The bank stated that JD.com's Q1 profit exceeded expectations, with revenue 1% higher than market expectations and in line with the bank's estimate. The gross profit margin decreased by 0.9% YoY, lower than the bank's estimate of 0.6%, due to increased spending to ensure production capacity in January and February during the pandemic, such as temporary staff expenses.

The report pointed out that JD.com's Q1 non-GAAP net loss narrowed by 18% YoY to RMB 712 million, better than the market's expected loss of RMB 1 billion, mainly due to the increase in non-operating income. By business line, internal revenue decreased by 2% YoY, while the bank estimated a 3% YoY decrease. External comprehensive supply chain business revenue increased by 11% YoY, better than the bank's expected growth of 8%.

Goldman Sachs: Continues to include HKEX in its "Buy" list, with a rating of "Buy" and a target price lowered by 2% to HKD 410

If calculated based on the latest closing price of HKD 309.6, this price implies a 32% upside potential!

The bank stated that based on the trading volume of HKEX from April to May this year, it has lowered its earnings per share forecast for the fiscal years 2023 to 2025 by 2%, 2%, and 3%, respectively.