On August 18, JD LOGISTICS fell 3.15% in regular trading, trading at HK$11.70/share with turnover of HK$109 million, extending weakness following its mid-year earnings release on August 13.

On the news front, Nomura on August 17 cut its target price on JD LOGISTICS from HK$20 to HK$18, maintaining a buy rating. Jefferies had previously lowered its target from HK$18.50 to HK$17.50. The downgrades reflect concerns over profit growth lagging revenue expansion.

The company reported H1 revenue of RMB 124.7 billion, up 26.5% year-over-year, but adjusted net profit grew only 10.7%. Q2 profit growth narrowed sharply to 2.5%, significantly underperforming the 24.3% revenue increase. Subsidiary Deppon Logistics swung to a net loss of RMB 262 million in H1, compared with a profit in the prior year, further weighing on investor confidence. Despite multiple brokerages maintaining buy ratings with an average target of HK$18.34, the stock continues to trade at a significant discount amid near-term earnings quality concerns.

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