China's JD.com shares up as revenue beats estimates

E-commerce firm JD.com posted an 11.4 per cent rise in third-quarter revenue on Friday (Nov 18), beating analysts’ estimates as Covid-19 lockdowns in China led more consumers to shop online.

US-listed shares in JD.com rose about 3 per cent in trading before the bell.

Chinese retail spending has sagged this year, with consumers frustrated by the government’s strict “zero-Covid” policy that has led to frequent snap lockdowns and hurt economic activity.

Lockdowns have seriously disrupted transport, but JD.com’s focus on building its logistics network has helped it deal with bottlenecks.

Revenue grew to 243.5 billion yuan (S$46.9 billion) in the three months ended Sept 30, compared with a Refinitiv consensus estimate from 22 analysts of 242.81 billion yuan.

Rival Alibaba reported 3 per cent revenue growth in the three months ended Sept 30.

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JD. com’s quarterly net income attributable to ordinary shareholders was 6 billion yuan, compared with a net loss of 2.8 billion yuan a year earlier.

Excluding one-off items, JD.com earned 6.27 yuan per American Depository Share, beating expectations of a 4.44 yuan profit per ADS.

Research house TH Data Capital noted in a report that sales growth at JD.com in September was better than that in July and August, driven mainly by consumer electronics, home appliance and fast-moving consumer goods. REUTERS