FX.co ★ JD.com to see robust sales growth despite coronavirus fears

Chinese online retailer JD.com Inc. will not be hit by the novel virus COVID-19 outbreak, analysts at Bloomberg Intelligence forecast. On the contrary, the company’s profit is expected to increase. According to Bloomberg Intelligence, JD.com posted a better-than-expected net profit of 3.6 billion yuan ($500 million) between October and December 2019, compared to a net loss of 4.8 billion yuan a year earlier. The company’s total net revenue for the fourth quarter of 2019 rose to 170.7 billion yuan, up by 26.6%. The net product revenue was up by 24.5%, while net service earnings surged 43.6%. In 2019, the Chinese e-commerce giant logged a 24.9% increase in year-on-year revenue, reaching 576.9 billion yuan. What is more, the number of annual active users grew 18.6% annually to 362 million. The outlook for China’s second-largest online retailer is rather optimistic despite the disruptions caused by the epidemic. JD.com foresees its net profit to grow by at least 10% in Q1, 2020. However, these estimates are subject to change due to the possible downside risks posed by the coronavirus outbreak.