JP Morgan: Raises JD LOGISTICS' target price to HKD 20, entering a long-term revaluation track

J.P. Morgan released a research report stating that JD LOGISTICS has entered a long-term revaluation track. The company's strong performance in the second quarter once again proves its ability to achieve continuous profit margin expansion. The bank believes that JD LOGISTICS is severely undervalued, mainly due to its unique business model lacking a verified track record and the market's misunderstanding of JD LOGISTICS as a cost center within JD.com's logistics. The bank also pointed out that JD LOGISTICS' current core EBITDA profit margin and net profit margin are higher than its peers, demonstrating that its operating model, even if not more competitive, is still viable economically. In addition, JD LOGISTICS' current operating profit accounts for about 24% of JD.com's total, serving as a key driver for the group to achieve its long-term profit margin target. J.P. Morgan has raised JD LOGISTICS' target price from HKD 19 to HKD 20 and maintains a "Overweight" rating