JD.com Stock: Soaring Profits Trigger Dividend Boost

Chinese e-commerce giant JD.com has significantly outperformed market expectations in the fourth quarter of 2024, with revenue climbing 13.4% to 347 billion yuan ($47.5 billion) compared to the same period last year. The company's net profit surged an impressive 190.8% to 9.9 billion yuan ($1.4 billion), dramatically improving its net margin from 1.1% to 2.8% year-over-year. This remarkable performance was largely driven by revitalized consumer demand across China, allowing JD.com to expand its market share further. Earnings per American Depository Share (ADS) more than tripled to 6.47 yuan ($0.89), representing a 203.8% increase compared to the previous year. These strong results prompted movement in pre-market trading, with JD.com shares rising 5.14% to $46.01.

Enhanced Shareholder Returns Amid Optimistic Outlook

For the full 2024 fiscal year, JD.com reported a 6.8% revenue increase to 1,158.8 billion yuan ($158.8 billion), while operating profit jumped 48.8% to 38.7 billion yuan ($5.3 billion). Based on this positive trajectory and an optimistic outlook for 2025, the company announced an increased annual cash dividend of $0.50 per ordinary share, equivalent to $1.00 per ADS. The dividend payment, totaling approximately $1.5 billion, is scheduled for late April 2025. The company's CEO expressed confidence about entering 2025 "with more optimism" as consumer sentiment continues to strengthen steadily.

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Source StockWorld