On August 17, JD-SW rose 3.81% in regular trading, trading at HK$114.8/share, with turnover of HK$138 million. The rebound follows a cumulative decline of over 13% last week after Q2 revenue fell 2.9% year-over-year — the first quarterly revenue decline since listing in 2014 — as the market gradually digested the negative impact.

Despite the revenue miss, profitability significantly exceeded expectations. Q2 adjusted net profit reached RMB 89.3 billion, up 20.8% YoY, well above the consensus estimate of RMB 77.8 billion. Operating profit swung from a RMB 9 billion loss a year earlier to a RMB 45 billion profit, while the food delivery business reduced losses by over 50% YoY. Jefferies maintained a Buy rating and raised its target price to HK$194 from HK$190. Management guided that the retail segment is expected to return to positive growth in Q3, reinforcing the profitability inflection point thesis and supporting sentiment recovery.

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