...August 19, 2024 This report does not constitute a rating action. HONG KONG (S&P Global Ratings) Aug. 19, 2024--JD.com's EBITDA will likely expand faster than our initial expectations. This is due to a gradual increase in EBITDA margin in 2024 and 2025. JD.com (A-/Stable/--) should therefore preserve its overall credit profile, despite a likely lower rate of revenue growth. The company's topline growth slipped to 1.2% sequentially in the second quarter ended June 30, 2024, compared with 7.0% in the previous quarter. We believe JD.com's electronics and home appliance product segment (which contributes to about half of its revenue) will improve in the fourth quarter of 2024. This follows a dull second quarter. The tendency of consumers to use government subsidies prior to its expiration at year end should help the revival. We also expect a pullback in demand in 2025. Even with trade-in policies and government subsidies, revenue from the segment fell 4.6% year-on-year. JD.com attributed this...
