H1 results in line with expectations, full year re-iterated Today JD reported H1 in line with market expectations and reiterated its full year profit guidance. This was very encouraging, particularly the robust commentary around JD''s US performance, given the struggles by some of its peers. The presentation filled in some details, for example discussing shrinkage, as well as updating on the growth strategy. After today we see consensus forecasts remaining unchanged but see plenty of scope for the stock''s multiple to re-rate. We reiterate our Outperform rating. Key numbers from H1 results H1 Adjusted PBT: Adj PBT of GBP 373.5m was in line with expectations (company-compiled consensus GBP 371m, BNPP Exane GBP 367m). The company gave current trading for the start to H2 (August/September): organic sales growth at constant exchange rates of +10% in the first 7 weeks of H2 is ahead of the +6% that we model for the whole of H2. Management reiterated its full year Adj PBT guidance of GBP 1.04bn (53 week basis), in line with consensus. Key takeaways from the conference call As we detail overleaf, the key points from the call included: a discussion of the US market, including a surprisingly low impact from shrinkage; format development and growth strategy; relationships with the sporting brands; European margin potential; and share buybacks. Re-iterate Outperform rating, target price GBp 200 The shares have enjoyed a relief rally today, primarily on the robust performance of the US division and the reiterated full year profit guidance. We expect consensus forecasts to remain unchanged, but the stock trades on a single digit P/E multiple (with nearly 20% of the market cap in net cash) which we view as too low. We see plenty more scope for the stock to re-rate, and our TP of GBp 200 would imply a forward multiple of only 12x.