Report by Aequitas Research
Looking to raise US$1bn in its upcoming Hong Kong IPO - JDP has been growing via acquisitions which has resulted in strong sales growth (99.6% CAGR FY20-22). However, its surging finance costs have brought the firm to adjusted net loss territory. With a net debt to equity ratio of 77% in FY22, it could potentially put a ceiling on its future expansionary plans (or the firm will likely need to tap equity markets post-listing for further financing). As much as JDP has made attempts to diversify away from its parent, it remains largely dependent on JD.com. Also, its pre-IPO shareholders don't appear to have subscribed to a lockup undertaking.