JD.com’s Automated Warehouses In Europe Commence Operations

JD.com (JD) has started operating two automated warehouses in Germany and Poland. Trials on the warehouses, which are poised to provide convenient and rapid fulfillment for clients across Europe, began in March.

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The warehouse in Poland is located on Germany’s border and is connected to major highways, airports, and ports in Europe. The warehouse in Germany is located in Frankfurt. JD has integrated a cutting-edge automated ground vehicle system in the warehouses to enhance the picking of items. The system is programmed to read QR codes on the floor to improve route planning and avoid obstacles.

“Through the warehouses in Poland and Germany, we have brought our quality supply chain, logistics and automation technologies to Europe,” said Stard Huang, head of JD’s international logistics business.

The opening of the two warehouses underscores JD’s commitment to promoting the development of global trade. As of the end of last year, the company operated 32 bonded and overseas warehouses.

Yesterday, JD inked a strategic partnership deal with Chinese E-sports Company, TJ Sports, to explore “e-commerce + e-sports” opportunities. The two plan to work together in nurturing e-sports talent while also building a healthy industry ecosystem.

Under the terms of the partnership, JD.com is to be the official partner of the League of Legends Mid-Season Invitational 2021. The collaboration could also expand to cover the promotion of activities, brand establishment, and new user recruitment. (See JD stock analysis on TipRanks).

Last week, Morgan Stanley analyst Eddy Wang upgraded JD stock to a Buy, but lowered his price target to $89 from $90, implying 13.43% upside potential to current levels.

Wang stated, “Sustainable margin improvement and strong FMCG growth are the two drivers to underpin JD’s long-term growth. Its strong financial position should enable it to weather a potential economic downturn.”

Consensus on Wall Street is that JD is a Strong Buy based on 14 Buys and 1 Hold rating. The average analyst price target of $106.47 implies 35.70% upside potential to current levels.

JD scores a “Perfect 10” on TipRanks’ Smart Score rating tool, suggesting that it is well-positioned to beat market expectations.