JD
Exclusive-JD.com set to be hit with EU subsidy charges over Ceconomy deal, sources say
Article Summary
HOLD- JD.com Inc ADR (NASDAQ: JD.com) is set to be hit with formal subsidy charges over its $2.5 billion bid for German electronics retailer Ceconomy, people familiar with the matter said, a move that could force the Chinese e-commerce giant to offer substantial remedies.
- The charges, known as statement of grounds under the Foreign Subsidies Regulation, are similar to a statement of objections or charge sheet under EU merger rules where regulators outline specific concerns, which must be addressed by companies or risk a veto on the deal, could come as early as Wednesday.
- The European Commission opened a full-scale investigation into the deal in May, warning that JDcom may be receiving preferential financing, tax incentives and grants from the Chinese government that may have helped JD.com Inc ADR offer a higher price for CEconomy.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 12.1% | 25% | 50.0 ptsMeets Minimum (12.1%) - Passes screener |
| EPS Growth Next 5Y ? | 25.2% | 25% | 80.0 ptsVery Good (25.2%) - Good outlook |
| Target Price Upside ? | 30.7% | 20% | 85.0 ptsLarge Upside (30.7%) - Target: $39.45 vs Current: $30.18 |
| Gross Margin % ? | 16.2% | 15% | 20.0 ptsThin (16.2%) - Low-margin business |
| Drawdown from 52-Wk High ? | -18.1% | 15% | 40.0 ptsMild Pullback (-18.1%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About JD
- JD.com, Inc. operates as a supply chain-based technology and service provider in the People's Republic of China and Europe.
- It operates through three segments: JD Retail, JD Logistics, and New Businesses.
- The company provides home appliances; mobile handsets and other digital products; computers, including desktop, laptop, and other various products, as well as printers and other office equipment; furniture and household goods; apparel; cosmetics and other personal care items; and pet products.
- It offers women's shoes, bags, watches, jewelry, and luxury goods; men's shoes, sports gear, and fitness equipment; automobiles and accessories; maternal and childcare products; toys and musical instruments; food, beverages, and fresh produce; gifts, flowers, and plants; and pharmaceutical and healthcare products, such as OCT pharmaceutical products, nutritional supplements, healthcare services, and other healthcare equipment.
- In addition, the company provides books, e-books, music, movies, and other media products; virtual goods consisting of online travel agency, attraction tickets, and prepaid phone cards and game cards; industrial products; and installation and maintenance services.
- Further, it offers online marketplace services for third-party merchants; marketing services; and omni-channel solutions to customers and offline retailers, as well as online healthcare services.
- Additionally, the company develops, owns, and manages its logistics facilities and other real estate properties to support third parties; and offers asset management services and integrated service platform; leasing of storage facilities and related management services, as well as engages in online retail business; technology-driven supply chain solutions; and logistics services.
- The company was formerly known as 360buy Jingdong Inc. and changed its name to JD.com, Inc. in January 2014.
- JD.com, Inc. was incorporated in 2006 and is headquartered in Beijing, the People's Republic of China.