Analyst Note| Chelsey Tam |
Wide-moat JD.com's non-GAAP third-quarter net income year-over-year growth of 100% significantly beat our higher-than-consensus expectations of 46%. We were impressed by the broad-based cost control, covering all cash expense lines and business segments. The biggest surprise in the quarter was JD.com’s new businesses segment swinging to a profit of CNY 276 million from a loss of CNY 2.1 billion in the same quarter of last year, ending years of losses. JD Logistics turned profitable to CNY 253 million versus negative CNY 727 million the same quarter last year, the second consecutive quarter of profitability.