JD.com’s shares surged more than 12% Monday after the Chinese e-commerce giant reported a 27% increase in fourth-quarter revenue and better-than-expected profit. The Chinese online retailer expects its self-operated logistics network to power it through the coronavirus outbreak, as it forecast double-digit sales growth for the first quarter of the year.
JD.com Not Deterred By The Recent Covid-19 Outbreak
The company reported fourth-quarter revenue of 170.7 billion yuan ($24.4 million), up 26.6% from 134.83 billion yuan during the same time period last year and beating consensus estimates of 167 billion yuan. Adjusted net income of 811 million yuan, or 0.54 yuan per share, also beat analysts’ average estimate of 718 million yuan.
E-commerce platforms like JD.com have benefited from the epidemic as consumers turned to online shopping to avoid virus exposure. JD.com’s annual active customers increased by 18.6% to 362 million in 2019. Mobile monthly active users in December increased by 41% compared with the same month in 2018.
Unlike competitors such as Alibaba and Pinduoduo, which have struggled during the outbreak with a shortage of available couriers at their delivery partners, JD.com’s in-house network — which has roughly 150,000 employees and is unique among major ecommerce platforms in China — has allowed it to quickly resume operations after the extended holiday period.