HSBC: JD.com's profitability may continue to improve this year

Golden Ten Data reported on May 13 that HSBC analysts stated in a research report that the expansion of retail business profit margins was the main driver behind JD.com's first-quarter earnings surpassing expectations. The analysts pointed out: "The continued improvement in JD Retail's profit margins, along with narrowing losses in its food delivery business, will increase market visibility regarding the company's profit recovery in 2026." The analysts also indicated that, due to last year's government subsidies creating a high base for electronics sales, revenue growth in the second quarter may be constrained; however, as the base turns favorable and categories such as healthcare and daily necessities show more resilient growth, growth is expected to rebound 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.