Bulletin: JD.com's Resilient Business And Cost Controls Can Fuel Growth

This report does not constitute a rating action. HONG KONG (S&P Global Ratings) August. 25, 2022 — Good business fundamentals and cost controls should help JD.com (BBB+/Positive/--) to expand EBITDA growth amid relatively tough conditions for online retailers in China. This supports our view that the e-commerce company will bounce back from COVID disruptions quickly and strengthen its market positions over the next 12 months, and underpins the positive outlook on the rating. We believe COVID-19 disruptions and slower GDP growth will continue to dent JD.com's sales and EBITDA margin in the next one to two quarters. However, the company may still outperform peers. Its second quarter results exceeded our expectations with above-peers' revenue growth and improvement in margins. This,

...HONG KONG (S&P Global Ratings) August. 25, 2022 -- Good business fundamentals and cost controls should help JD.com (###+/Positive/--) to expand EBITDA growth amid relatively tough conditions for online retailers in China. This supports our view that the e-commerce company will bounce back from COVID disruptions quickly and strengthen its market positions over the next 12 months, and underpins the positive outlook on the rating. We believe COVID-19 disruptions and slower GDP growth will continue to dent JD.com's sales and EBITDA margin in the next one to two quarters. However, the company may still outperform peers. Its second quarter results exceeded our expectations with above- peers' revenue growth and improvement in margins. This, in our view, is party attributed to the fact that JD.com owns and operates its proprietary supply chain infrastructure for warehousing and fulfillment of orders. Online retailers faced different level of logistics disruptions during second quarter, amid strict...

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