On August 21st Beijing time, JD's US stock market fell 9.54% after trading, to $25.50 per share. In terms of Hong Kong stocks, in early trading today, JD Group (9618. HK) closed down 10.25% at HKD 100.70 per share.
Faced with the decline in stock prices, JD.com announced at noon on the Hong Kong Stock Exchange that the company spent approximately $390 million today to repurchase stocks and has fully utilized the repurchase limit of the $3 billion stock repurchase plan approved in March this year.
On the news side, according to the Associated Press of Finance, Wal Mart will reduce all its holdings of JD shares. People familiar with the matter said that Wal Mart planned to sell 144.5 million shares of JD at a price of $24.85 to $25.85 per share. According to the highest asking price, Wal Mart can raise 3.74 billion dollars.
According to the data of London Stock Exchange Group (LSEG), Wal Mart owns 5.19% shares of JD and is the largest shareholder of JD. The cooperation between the two companies began in 2016, when Wal Mart sold its No. 1 online grocery store in China in exchange for 5% shares of JD. Soon after, Wal Mart increased its stake in JD to 10.8%.
According to the report of Dahe Financial Cube, investors close to the transaction analyzed that this transaction should be Wal Mart's need to ease its own financial pressure. Because Wal Mart's income growth slowed down in the second quarter, its cash flow decreased, and it also needed to make a diversification strategy in response to the changes in the current market environment. To release resources and optimize capital allocation, the exit of JD's equity investment was completely a normal capital operation, not involving the strategic cooperation between the two sides.
Morgan Stanley lowers its revenue forecast for JD.com
On August 15th, JD Group released its Q2 2024 financial report, which showed that the company achieved a revenue of 291.4 billion yuan, a year-on-year increase of 1.2%; The net profit attributable to the parent company was 14.5 billion yuan, a year-on-year increase of 69%.
In response to concerns about the low price war and e-commerce competition, JD executives responded during a conference call that they are attracting more third-party merchants to help enrich the supply of industrial belts and low-priced products. "JD's way of obtaining the lowest price will not be based on squeezing the interests of its partners
Morgan Stanley reminded investors after the release of JD Group's financial report that in the context of weak consumption and increasingly fierce e-commerce competition, JD's revenue growth was only 1.2% year-on-year, which should attract market attention. Morgan Stanley cautiously lowered its revenue forecast for JD.com, reducing its revenue expectations for 2025 and 2026 by 5% and 10% respectively.
It is worth noting that another major home appliance company, Alibaba, recently disclosed its latest financial report. In the first quarter of fiscal year 2025, Alibaba achieved a revenue of 243.236 billion yuan, a year-on-year increase of 4%; Net profit was 24.022 billion yuan, a year-on-year decrease of 27%; Adjusted EBITA decreased by 1% year-on-year to 45.035 billion yuan.
This article combines information from Caixin, Dahe Financial Cube, Securities China, and Public Information