According to a research report released by CICC, JD-SW (09618) is expected to deliver solid retail revenue in the third quarter. The group's third-quarter revenue is projected to grow 3.5% year-on-year to RMB 309.5 billion, while non-GAAP net profit is expected to rise 41% year-on-year to RMB 8.16 billion, with a non-GAAP net margin of approximately 2.6%. The investment bank maintains its "Outperform" rating on JD.com (JD.US) with a target price of US$36.

The bank expects JD's retail revenue to grow 3% year-on-year, as the electronics category gradually moves past the impact of last year's high base, performing slightly better than the bank's previous expectations. Revenue from general merchandise is forecast to grow 7.5% year-on-year, accelerating on a quarter-on-quarter basis, while commission and advertising revenue is expected to increase 9.4% year-on-year.

The bank anticipates that the group's overall gross margin will reach a record high of 17.6% in the third quarter, mainly benefiting from continuous optimization of supply chain management capabilities. JD Retail's operating margin is expected to remain stable at a high level of 5.7% year-on-year.