Daily Investment Strategy
Daily focus：JD Logistics（2618）
JD Logistics delivered a strong performance in the second quarter of 2025, with revenue reaching RMB 51.56 billion, representing a year-on-year increase of 17%, exceeding market expectations. The company’s first-party (1P) and third-party (3P) integrated supply chain businesses grew by 31% and 18%, respectively. The 1P business benefited from the strong performance of the JD platform and supportive trade renewal policies. The gross margin improved to 10.6%, up significantly from 7.2% in the first quarter, though slightly lower than the same period last year. Adjusted net profit was approximately RMB 2.6 billion, basically in line with market consensus. Looking ahead to the second half of the year, the company expects revenue growth to accelerate, especially as the newly launched food delivery business begins to contribute revenue in the third quarter. The number of external customers and average revenue per customer in the third-party business continue to rise, maintaining growth momentum.
China's retail sales, fixed asset investment, and industrial output all fell short of expectations
China's economy showed signs of slowing in July, with various indicators broadly weakening. In terms of retail sales, after reaching a relatively high growth rate of 6.4% in May, the growth rate declined for two consecutive months, falling to 3.7% in July. As the consumption subsidy effect that lasted for nearly a year gradually fades, it is inevitable that growth in goods consumption slows down in the absence of new subsidy measures. However, it is worth noting that previous subsidy policies mainly focused on subsidies for physical goods sales, but recent policy directions are gradually shifting towards supporting the service sector.
Regarding fixed asset investment, the decline was more severe. The growth from the beginning of the year dropped sharply to 1.6%. Excluding real estate development investment, fixed asset investment growth further declined by 1.3 percentage points compared to the previous month, down to 5.3%. Only some high-tech industries maintained faster investment growth, reaching double-digit percentages.
Industrial output performance was relatively stable, maintaining above 5% growth for most of the past twelve months. High-tech manufacturing continued to provide solid support, but the overall performance still fell short of market expectations.
On Friday, the Shanghai-Hong Kong Stock Connect recorded a net inflow of HKD 35.876 billion, with the Tracker Fund of Hong Kong (2800) seeing the largest net inflow of HKD 12.79 billion, followed by the Hang Seng China Enterprises Index ETF (2828).
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to: https://apps.sfc.https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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