Jingdong'S US Stocks Rebound Nearly 80%, What Is Behind The Growth?

Few companies can be like.

Similarly, dare to do "heavy" and dare to reshape the social chain.

Whether ten years ago or today, Jingdong is doing a long term investment with few investments.

This long term investment and capital cooling led to a fall in Jingdong's US stock valuation.

But just a few days ago, Jingdong shares rebounded nearly 80%, and the market value returned to $50 billion. The last time the Jingdong occupied the high point was in June 2015.

We have discussed the business mode and spiritual value of Jingdong many times. Now investors have explained their recognition of Jingdong mode with real gold and silver.

Then, we can discuss what is behind the Jingdong's value growth.

[capital should look East, growth momentum represented by Jingdong]

After 30 years of reform and opening up, China has basically completed the pformation from a rural economy to an industrial economy. The same thing took 120 years in the United Kingdom, and the United States used it for 60 years, and Japan used it for 45 years.

Once China's economic pformation is successful and its consumption upgrade is realized, China will enter another prosperous period of at least 60 years, and truly become the center of global economic power.

In the next 20 years, China's middle class population will rise to 450 million, more than the whole population of the United States.

The middle class's release of consumption power is limitless. Food, clothing and household products first expand to buy cars, jewelry, lifestyle, leisure travel, entertainment and personal services.

The unlimited business opportunities in the upgrading of consumption have begun to show its strong driving force, and in the second stage of the upgrading of electricity consumption, the quality of commodities and the overall service capabilities will be fought.

Obviously, in the current electricity supplier pattern, the advantage of Jingdong is obvious.

All along, the Jingdong through the control and service of the industrial chain to deepen the electricity supplier infrastructure.

At the same time, Jingdong, which already has powerful traffic entry, is actively planning the next round of ecological entry.

The essence of capital value investment lies in which country's economy is rising rapidly, which market the capital flows to and which industry is rising.

Obviously, the answer is China, consumer upgrading and quality intelligent electric business.

So Jingdong's strong rebound in stock prices is not surprising to me.

Jingdong shares rose 38% in the four months of this year, compared with the increase in Amazon and Alibaba 20-30% over the same period. Investors are betting on capital in the future.

[back to 50 billion, what does Jingdong depend on?

Jingdong's navigating advantage is beyond doubt. To win the recognition of rational investors, we must speak with profitability.

Jingdong has made several moves to improve its profitability.

First of all, Jingdong logistics, Jingdong finance and other independent, through Jingdong service socialization to empower the economic infrastructure, while changing the flow of entry into the ecological entrance, improve the ability to control the industrial chain.

I have analyzed, Jingdong logistics will be the real economy industry chain in the information flow, capital flow baptism after the third OCS upgrade.

As a commercial foundation, Jingdong finance has become an invisible source of business operation.

In the future, no matter which entrance you take to spend, you may be represented by infrastructure services such as Jingdong logistics and finance. For the mobile Internet with dividend disappearing, Jingdong's internal strength shows a deep accumulation of deep value.

Secondly, through the "million convenience store" plan, the offline output of Jingdong's industrial chain resources is carried out.

This round of resurgence in the winter of mobile Internet is a growing consensus: online is not enough.

Relying on Jingdong's abundant commodities and powerful supply chain resources, ground crew, intelligence and big data technology strength, integrating the national convenience store channels, this will have a huge flow inlet, and provide a versatile omni-directional experience advantage that can not be replaced online.

WAL-MART has a strong entity business super supply chain network in China. It is an essential shortcut for Beijing Dongzhi to win the super war.

Experience economy consumption upgrade or offline channels occupy an advantage in advance. Through the "million convenience store" plan, combined with the strong flow of WeChat's small program and WAL-MART's offline supply chain network, Jingdong brings endless imagination.

In addition to infrastructure construction and offline channel layout, the most intuitive perception of C users is the Jingdong's "quality business strategy".

In the final analysis, C users can pay for products or services in the long run.

Brand self-reliance, self built logistics, which at the beginning seem to be thankless, has become the most powerful weapon for Jingdong in the coming wave of consumer upsurge.

The most obvious is that almost all the strength of electricity providers began to emphasize speed last year, and this is

Things started ten years ago.

For product quality, international brand high-end products continuously imported and Jingdong's own "insist on genuine" brand value enable brands and Jingdong to achieve mutual empowerment.

The Jingdong promotes the informatization level and efficiency of the whole industry chain through the infrastructure empowerment industry chain and the million convenience store energy line.

It can be said that the market value is back to $50 billion, but the value return of Jingdong after many years of accumulation. Jingdong's potential is far from that.

After the summit, the story of Jingdong continues.

When I talked with Patrick, a famous American venture capitalist IDG, he talked about a clear conclusion: the industrial center of a country is difficult to migrate, and the industrial center like Silicon Valley is unreportable.

There are four reasons for this: talents, big companies, VC and incubators, and infrastructure such as pportation and law.

Similarly, the Jingdong can not be replaced by the tens of thousands of teams created by years of quality service, the control and empowerment of the whole industry chain cooperation company cluster, the huge user and traffic entry, and the infrastructure formed by logistics, finance and so on.

If the original e-commerce pattern is a plane, Jingdong will change the whole pattern from plane to three-dimensional.

The spring river heating duck prophet, now discussing the "Jingdong not profitable" voice has been very few, everyone seems to be more or less aware that if the former Jingdong is

Giant, Jingdong today may have been on the front-end of the Internet based reform. At this level, profitability is no longer a problem. It only depends on time and willingness.

The old capital of Hongkong once said to me some of the features of high quality stocks: good management, creative ability, higher gross margin than 15%, outstanding performance.

There is no doubt that Jingdong has been recognized in the management capacity and industry and marketing creativity. Last year, it has realized gross margin of 15%, and is continuing to break through in the non 3C area with higher gross profit margin.

I think Jingdong's stock price still has much room for growth.

Social wealth is being destroyed and is constantly emerging.

I wonder if you have any wisdom to catch the next big trend of investment?

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