JD - new call warrant available over one of this year's top underperforming stock
🆕Macquarie has listed new $JD-SW(09618)$ call warrant $JD MB eCW260505(PKGW.SI)$ (https://warrants.com.sg/tools/livematrix/PKGW) that costs SGD 0.034 when JD is trading at HKD 114.80 and will move approximately 5.2 times more than JD shares based on its effective gearing level
🎢JD shares have seen a rollercoaster year, surging as much as 33% at the start of the year before diving 36% from its March peak to close at HKD 114.80 yesterday
🍾Just two weeks ago, JD announced record breaking sales which surged 60% from the previous year, from its 11.11 promotion
📢A day after, the company announced 3Q revenue that grew at a faster than expected 15%, although a margin drag from new businesses led to a 55% fall in its 3Q net income
🛵JD's move into the meal delivery and fast-commerce sectors earlier this year broke a long-held duopoly and forced rivals Meituan and Alibaba into a fierce battle of discounts that is eroding industry-wide margins
⛔The red-hot competition in instant delivery is intensifying deflationary pressures, forcing Beijing to launch a campaign aimed at easing the price declines (Bloomberg)
🔻JD shares fell as much as 11.6% since its results announcement to a new 10-month low of HKD 110.30 last Friday
👀JD consequently sits as one the top losing index stocks on the $HSI(HSI)$ with its year to date (ytd) loss of 15.6% compared to the HSI's 29.3% ytd gain
📊JD's current price-to-earnings ratio is 9.1x, below Chinese e-commerce rivals Alibaba's 23.9x and Meituan's 19.8x
✳Those keen to trade a potential rebound of JD's share price from its current 10-month low can consider using new call warrant PKGW to do. Macquarie does not have a put warrant tracking JD shares
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