1H results at the top-end of management expectations, reporting a 13% fall in adjusted 1H23 PBT to £383.5m (1H22 £439.4m) versus INVe £379m driven by a return to historically more normal 1H:2H trading patterns and an expected fall in US profits (£130.4m vs 1H22 £245.5m) after last year’s fiscal stimulus cheques which were estimated to have contributed an exceptional £100m EBIT in 1H22. This was partially offset by a very strong recovery in Europe and Asia. UK EBIT was down 9% to £154.8m (£170.8m), despite sales up 6%, as full business rates returned, equating to an extra £20m. Strong start to 2H. In the 1st 6 weeks, total revenue growth in organic businesses (ex DTLR/MIG acquisitions) accelerated to 8%, from 5% in 1H. The US returned to growth (up c.10%), after tough 1H comps. Europe is up double digit & the UK just in positive territory after a soft August/early September. FY23 guidance maintained for flat adjusted PBT YoY vs FY22 PBT of £947m (INVe FY23E PBT £958m; FactSet consensus £960m) at constant FX. While 1H profits were at the top-end of management’s expectations and 2H has started well, management is conscious about the widespread macro-economic uncertainty and inflationary pressures ahead. We have left our forecast unchanged at the PBT level though have reshaped the divisional split. Growth strategy and opening plans very much on track. The team is pleased with the performance of recent acquisitions. Management continuing to expect to open a store a week in Europe and to have c.140 JD stores in the US (101 end of July) by year end. The shares trade on an undemanding valuation (CY23E 9.5x). In our view, this does not reflect the strength of JD’s global proposition nor the multitude of exciting long term growth opportunities available. The balance sheet is strong with forecast FY23E IAS17 net cash of c.£1.5bn available for acquisitions. We reiterate BUY.