Daily focus：JD.com (9618)
JD.com announced its Q3 2025 results, with total revenue of RMB 299.1 billion, a year-on-year increase of 14.9%, exceeding market expectations. Non-GAAP net profit reached RMB 5.8 billion, also exceeding expectations. JD Retail revenue grew by 11.4%. Looking ahead, management is cautious about Q4, mainly due to the extremely high base of comparison brought about by the "trade-in" policy for home appliances. The company affirmed that the food delivery business is a long-term investment strategy and plans to continue investing in artificial intelligence over the next three years. Daily necessities and advertising services are considered important growth engines for the future, and the company maintains its long-term profit margin target of high single digits.
China's economic data shows a slowdown
On Friday, China's National Bureau of Statistics released several data points, but the overall picture was weak. Fixed asset investment and industrial value-added both fell short of market expectations, while retail sales growth exceeded expectations, only slightly softening compared to the previous month. Fixed asset investment growth has slowed significantly since April, recording a 1.7% decline in the first ten months, marking the second consecutive month of negative growth. As for industrial value-added, growth fell to its lowest level since the beginning of the year, at 4.9%. Even though high-end manufacturing maintained high growth, the rate of increase dropped sharply to 7.2%, far below the average growth of 9.6% over the past nine months. Retail sales growth slowed as expected, with month-on-month sales growth almost flat, reflecting that despite the support of the Golden Week holiday, consumer spending did not further improve.
Hong Kong Stock Connect saw a net inflow of HK$12.8 billion on Friday, with Alibaba (9988) seeing the largest net inflow at HK$2.26 billion, followed by Tencent Holdings (700). On the other hand, China Life (2628) recorded the largest net outflow at 260 million yuan, followed by Pop Mart (9992).
Hong Kong stocks were dragged down by the overnight plunge in US stocks, with technology stocks generally declining. The Hang Seng Index opened 412 points lower and then widened its losses, closing down 500 points or 1.8% at 26,572; the H-share Index fell 201 points or 2.1% to 9,398; and the Hang Seng Tech Index fell 168 points or 2.8% to 5,813. Total market turnover was HK$232.8 billion. Baidu (9888) shares plunged more than 6%, its biggest drop in nearly seven months. JD.com (9618) shares fell more than 5%. In contrast, JD Health (6618) reported a 29% increase in third-quarter revenue to RMB 17.1 billion, beating expectations, and its shares rose 6.6% against the market trend, making it the best-performing blue-chip stock.
Source: KGI Investment Products and Solutions Department
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