JD.com shares surged in Hong Kong on Friday after the e-commerce giant reported better-than-expected fourth-quarter results that raised hopes for its future growth prospects.
The company’s stock jumped more than 8% in early trading, hitting a record high of HK$465.20 per share. The surge came after JD.com reported a 31.4% increase in net revenue for the fourth quarter, beating analysts’ expectations. The company also posted a net profit of 3.6 billion yuan ($559.3 million), compared to a loss of 0.8 billion yuan in the same period last year.
Investors were particularly encouraged by JD.com’s strong performance in its core e-commerce business, which saw a 30.3% increase in net revenue to 235.8 billion yuan. The company’s active customer accounts also grew by 30.3% year-over-year to 472.9 million.
In addition to its e-commerce business, JD.com’s other segments also performed well. Its technology and innovation services revenue grew by 26.2% to 7.7 billion yuan, while its logistics services revenue increased by 42.6% to 9.9 billion yuan.
JD.com’s strong results were driven by a combination of factors, including increased demand for online shopping during the pandemic, as well as the company’s investments in technology and logistics infrastructure. The company has been expanding its product offerings and improving its delivery services to attract more customers and compete with rivals like Alibaba.
Looking ahead, JD.com’s management expressed confidence in the company’s growth prospects, citing its strong market position and continued investments in technology and innovation. The company is also benefiting from China’s strong consumer spending and the shift towards online shopping, which is expected to continue to drive growth in the e-commerce sector.
Analysts are optimistic about JD.com’s future prospects, with many raising their price targets for the stock following the strong fourth-quarter results. Some analysts believe that JD.com could continue to outperform its competitors and gain market share in China’s e-commerce market.
Overall, JD.com’s strong fourth-quarter results and positive outlook have boosted investor confidence in the company’s future growth potential. The stock’s sharp rise in Hong Kong reflects the market’s optimism about JD.com’s prospects and its ability to capitalize on the growing demand for online shopping in China.