Bulletin: JD.com Inc.'s Slower EBITDA Is Bump On Road To Stronger Market Share

HONG KONG (S&P Global Ratings) May 21, 2021--S&P Global Ratings said today that JD.com Inc.'s solid 39.0% growth in revenue captures our positive outlook on the China e-commerce company's potential to expand its market share. The slower EBITDA growth of 9.8% in first quarter 2021 is in line with our expectation and does not affect our rating (BBB+/Positive/--). In our view, profits will continue to drag in 2021 before reversing in 2022. While earnings improved in the retail segment in the first quarter, this was not enough to offset greater operating losses in JD.com's logistics arm and other new business initiatives to penetrate into lower-tier cities. We expect EBITDA growth to decelerate further in the second half of 2021 post

...May 21, 2021 HONG KONG (S&P Global Ratings) May 21, 2021--S&P Global Ratings said today that JD.com Inc.'s solid 39.0% growth in revenue captures our positive outlook on the China e-commerce company's potential to expand its market share. The slower EBITDA growth of 9.8% in first quarter 2021 is in line with our expectation and does not affect our rating (###+/Positive/--). In our view, profits will continue to drag in 2021 before reversing in 2022. While earnings improved in the retail segment in the first quarter, this was not enough to offset greater operating losses in JD.com's logistics arm and other new business initiatives to penetrate into lower-tier cities. We expect EBITDA growth to decelerate further in the second half of 2021 post consolidation of loss-making Dada Nexus Ltd., which JD.com will be consolidating upon closing of the transaction, as well as the absence of one-off benefits from relief of social insurance benefits received in 2020. We continue to expect JD.com and...

Bulletin