JD.com Shares Rise In Hong Kong After Earnings Beat
By Tracy Qu
JD.com shares rose sharply in Hong Kong after the e-commerce giant's fourth-quarter results beat expectations and raised hopes for its outlook.
Hong Kong shares rose as much as 9.7% to 97.85 Hong Kong dollars (US$12.50) on Thursday.
JD.com's shares are also listed on the Nasdaq, where they closed Wednesday 16% higher after the company said its fourth-quarter revenue rose 3.6% compared with the same period a year earlier to 306.08 billion yuan (US$42.52 billion), beating a FactSet-compiled estimate of CNY300.08 billion.
Net profit increased 12% on year to CNY3.39 billion.
Analysts welcomed the company's plan to reinvest excess profit to drive faster growth, saying it could result in higher earnings if executed well amid an economic rebound in China.
JD.com also announced a new buyback program for up to US$3 billion in stock through 2027, and declared a US$1.2 billion cash dividend.
JD.com's buyback and annual dividend may seem small when compared with its peers', according to Citi analysts led by Alicia Yap. However, they think the company has been using its available cash wisely and will likely consider increasing dividend payouts in the future.
Write to Tracy Qu at tracy.qu@wsj.com
(END) Dow Jones Newswires
March 06, 2024 23:10 ET (04:10 GMT)
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