Nomura: Expects JD-SW (09618) to have an adjusted net profit increase of 25% year on year in the first quarter.

Nomura released a research report stating that, benefiting from the continued subsidies for trading in old items for new ones and the strong performance of JD Supermarket on JD.com, the bank predicts that JD.com's first quarter revenue and adjusted net profit are expected to increase by 12% and 25% year-on-year, respectively, both surpassing institutional expectations. Nomura predicts that, driven by the sales of smartphones, JD.com's electronic goods category revenue could increase by 11% year-on-year. At the same time, propelled by the strong performance of JD Supermarket and fashion categories, the growth of the group's daily general merchandise category may accelerate by 13%. Regarding the market and advertising business of JD Retail, Nomura believes that the revenue could increase by 15% annually, benefiting from the accelerated growth of the advertising business.