By Tracy Qu
Shares of JD.com surged after the Chinese e-commerce company returned to profit in the first three months.
The online retailer's shares were 7.0% higher in Hong Kong as of the midday break on Wednesday. By comparison, the Hang Seng Tech Index was 0.3% higher and the benchmark Hang Seng Index rose 0.5%.
JD.com has seen its bottom line deteriorate since it entered China's highly competitive food-delivery market in early 2025, taking on the likes of Meituan and Alibaba Group.
Citi analysts said in a note that JD.com's first-quarter result beat expectations.
Looking ahead, "JD Group profit should also benefit from further loss reduction on food delivery despite disciplined investment in the international Joybuy business," they added.
The Citi analysts raised their target price on JD.com's U.S.-listed stock to US$39.00 from US$36.00 following earnings. The company's American depositary receipts closed 3.1% higher on Tuesday.
Fundamentals of JD.com's food-delivery business continued to improve, Jefferies analysts said in a note. While the company may be weighed by base effects and higher memory costs in the second quarter, markets have likely factored this in, Jefferies added.
Shares of JD Logistics rose 6.5% as of the midday break, while JD Health International gained 6.25%. Both subsidiaries reported higher first-quarter profit on Tuesday.
Write to Tracy Qu at tracy.qu@wsj.com
(END) Dow Jones Newswires
05-13-26 0057ET
