East versus West: the rivalry between China and the United States is entering a new round. The latest tariff threat from Donald Trump, following a trade dispute between Beijing and Washington over rare earths, has sent financial markets into turmoil. By announcing a 100% tariff on Chinese imports, the US President triggered a global stock market sell-off. Chinese technology stocks were hit particularly hard. JD.com’s share price dropped by around 7% and is now approaching its yearly low. Yet the operational figures of China’s second-largest online retailer after Alibaba tell a different story.
In the second quarter, JD.com clearly exceeded analysts’ expectations. Revenue rose by 22.4% to CNY 356.66 billion, compared with the average estimate of CNY 331.63 billion. This demonstrates that Chinese consumer sentiment remains stable on the platform despite weaker macroeconomic data and ongoing uncertainty. Growth was driven mainly by price discounts, government subsidies, and strong demand in the electronics segment. Although net profit halved year-on-year to CNY 6.2 billion, this was primarily due to higher investments in new business areas such as food delivery. Analysts view this as a necessary investment in growth within an increasingly competitive market.
Speaking of investments: JD.com is currently reaching out to Europe. The planned acquisition of Germany’s Ceconomy, the parent company of MediaMarkt and Saturn, marks a particularly strategic move. The company is offering shareholders EUR 4.60 per share, valuing Ceconomy at around EUR 2.2 billion. For Ceconomy’s management and supervisory board, this is a fair offer, and they therefore recommend that shareholders accept it. The acquisition would give JD.com access to one of Europe’s largest electronics retailers and a network of around 1`000 stores across eleven countries, representing a key milestone in the group’s international expansion strategy.
JD.com’s roots lie in online retail. Founded in 1998, the company is one of the pioneers of modern e-commerce. Unlike many of its competitors, JD.com operates a fully integrated business model, selling not only third-party products but also its own goods directly to consumers. A key success factor is its nationwide logistics network with more than 1`500 warehouses, enabling fast delivery across almost all regions of China. Over the past decade, JD.com has more than doubled its revenue. In addition to its core e-commerce business, the company is increasingly developing new segments, including cloud services, fintech solutions, and more recently, food delivery. Earlier this year, it launched “JD Takeaway,” a platform designed to support catering vendors and promote the food delivery industry. Overall, JD.com is evolving from a pure e-commerce platform into a comprehensive technology and service conglomerate.
Analysts remain optimistic about the internet giant’s prospects. After a transition year in 2025, consensus estimates forecast double-digit earnings growth for the following two years. Based on these projections, JD.com trades at a single-digit price-to-earnings ratio (P/E), making it appear attractively valued relative to peers. Most experts share this view: the average target price currently stands at USD 43.40, implying an upside potential of nearly one-third over the next twelve months.
Whether JD.com’s share price will rebound remains to be seen. At present, the stock appears to be in a bottoming phase. Yield enhancement products can demonstrate their strengths in such consolidation periods. Leonteq has launched two new softcallable BRCs featuring a substantial downside buffer of 41%, giving the tech stock considerable room on the downside. At the same time, the new products offer double-digit annual returns. The CHF version carries a coupon of 10.00% p.a., while the USD-denominated note offers a guaranteed interest payment of 14.00% p.a. To achieve the maximum return within the one-year maturity, no price increase in the underlying is required. The key condition is that the barriers remain intact during the term. Owing to the built-in softcallable feature, the maturity may shorten. Every three months, starting after six months, the issuer has the right to redeem the product early at 100%.
Should JD.com’s share price, as many research houses expect, resume its upward trend, speculative investors can amplify this movement. The same applies on the downside, should the stock not yet have found its bottom. Leonteq’s continuously expanding product range includes Mini-Futures, Knock-Out Warrants, and classic Warrants on the Chinese internet stock, all of which enable leveraged participation in price movements both upwards and downwards. Owing to this leverage effect, gains or pullbacks can translate into above-average profit opportunities.
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