Daiwa has reiterated its "Buy" rating on JD-SW (09618) and increased its target price slightly from HK$171 to HK$172. The company's fourth-quarter 2025 performance largely aligned with expectations. Following a recalibration of subsidy programs, sales of electronics and home appliances showed a sequential recovery in the first quarter of 2026. JD-SW's revenue growth and profit recovery guidance for 2026 surpassed the bank's initial concerns. Capital returns remain robust, supported by cash dividends and a US$3 billion share buyback plan.