JD Logistics posts strong Q2 2024 growth, shares slip

JD Logistics reported a stronger-than-expected second-quarter performance on Wednesday, posting revenue growth and margin expansion despite a pullback in its shares.

The logistics unit of China’s JD.com said revenue rose 18% year-over-year to 42.3 billion yuan ($5.9 billion), exceeding analyst forecasts of 40.1 billion yuan. Net profit attributable to shareholders climbed 25% to 1.8 billion yuan, driven by higher parcel volumes and cost efficiencies in warehouse automation and last-mile delivery.

Gross margin expanded to 12.4%, up from 11.1% in the same period last year, as operational leverage offset rising fuel and labor costs. The company cited robust demand during the mid-year shopping festival as a key driver of volume growth.

Despite the positive financials, JD Logistics’ shares fell 2.3% in Hong Kong trading, underperforming the broader market. Analysts attributed the decline to broader concerns over China’s consumer spending outlook and heightened competition in the domestic logistics sector, where rivals such as Cainiao and SF Express have been aggressively expanding capacity.

Management maintained a cautious tone on full-year guidance, noting that while e-commerce logistics demand remains resilient, macroeconomic headwinds and regulatory pressures could weigh on margins. JD Logistics reaffirmed its target for full-year revenue growth of 15-17%, but did not provide an updated earnings outlook.

The company’s results follow a pattern seen across China’s logistics sector, where firms are balancing volume growth with margin discipline amid shifting consumer behavior and regulatory scrutiny.

Investors will monitor JD Logistics’ ability to sustain profitability as competition intensifies and economic conditions remain uncertain.