But I cant help but think, why not invest in BABA or PDD? Is it purely valuation or the fact JD is yet to run up?
Have you also considered other Asain behemoths like Sea and Coupang? I also really like their growth stories and they seem to be in a better place than JD
Hi mate. Thank you. So I already own BABA from an average of 72 and PDD from 112. JD is a new addition.
I do also own SE as a core position at average of 80 from a few years back. CPNG I owned for a little but I lost money on that one. Agree they are better companies but I see money to be made here
Really interesting breakdown on the logistics advantage. JD's propritry supply chain seems like a real moat compared to competitiors like Alibaba. The Q2 food delivery spend is a bit concerning tho, wonder if they're going to see payoff in the next few quarters or if this becomes a cash drain. The valuation at 7x EBITDA does look compeling given their profitability trajectory.
Great breakdown on JD! The logistics advantage is realy underrated in my opinion. Most people focus on Alibaba and PDD but JD's infrastructure is actully a huge moat. I'm curious tho about the food delivery expansion and whether it will canibalize margins long term or if the cross selling benefits will make up for it. The valuation at 7x EBITDA looks attractive compared to US tech peers.
Great analysis! The valuation gap between JD and its peers like BABA and PDD is striking, especially considering JD's proprietary logistics network. The fact that JD Logistics has been profitable for 11 of the last 12 quarters is a strong validation of their busness model. While the food delivery losses are concerning in the short term, if they can leverage their existing infrastructure to gain traction in that market, the long-term payoff could be substantial. The 7x EV/EBITDA multiple seems overly punitive given the competitive moat from their supply chain. Curious to see if they can close the YTD performance gap with peers as sentiment improves.
Don’t want more that one Chinese stock in portfolio
Yes my favourites remain KWEB and BABA. Long BABA since 2023 December
Good write-up! You make a compelling case.
But I cant help but think, why not invest in BABA or PDD? Is it purely valuation or the fact JD is yet to run up?
Have you also considered other Asain behemoths like Sea and Coupang? I also really like their growth stories and they seem to be in a better place than JD
Hi mate. Thank you. So I already own BABA from an average of 72 and PDD from 112. JD is a new addition.
I do also own SE as a core position at average of 80 from a few years back. CPNG I owned for a little but I lost money on that one. Agree they are better companies but I see money to be made here
Really interesting breakdown on the logistics advantage. JD's propritry supply chain seems like a real moat compared to competitiors like Alibaba. The Q2 food delivery spend is a bit concerning tho, wonder if they're going to see payoff in the next few quarters or if this becomes a cash drain. The valuation at 7x EBITDA does look compeling given their profitability trajectory.
Great breakdown on JD! The logistics advantage is realy underrated in my opinion. Most people focus on Alibaba and PDD but JD's infrastructure is actully a huge moat. I'm curious tho about the food delivery expansion and whether it will canibalize margins long term or if the cross selling benefits will make up for it. The valuation at 7x EBITDA looks attractive compared to US tech peers.
Great analysis! The valuation gap between JD and its peers like BABA and PDD is striking, especially considering JD's proprietary logistics network. The fact that JD Logistics has been profitable for 11 of the last 12 quarters is a strong validation of their busness model. While the food delivery losses are concerning in the short term, if they can leverage their existing infrastructure to gain traction in that market, the long-term payoff could be substantial. The 7x EV/EBITDA multiple seems overly punitive given the competitive moat from their supply chain. Curious to see if they can close the YTD performance gap with peers as sentiment improves.