Understanding the Market | J&T EXPRESS-W rises over 4% again as Southeast Asia's parcel volume performs strongly in the first half, far exceeding the annual growth target set at the beginning of the year
J&T EXPRESS-W's stock price rose over 4% again, with a cumulative increase of nearly 30% this month, currently reported at HKD 8.77, with a transaction volume of HKD 158 million. Daiwa released a research report stating that J&T EXPRESS's parcel volume in Southeast Asia increased by 58% year-on-year in the first half of the year, far exceeding the 30% target set at the beginning of the year, mainly driven by e-commerce promotions and new customer growth. Credit Lyonnais expects that the Southeast Asian market will contribute a larger proportion of profits
According to Zhitong Finance APP, J&T EXPRESS-W (01519) has risen over 4% again, with a cumulative increase of nearly 30% this month. As of the time of publication, it is up 4.53%, priced at HKD 8.77, with a transaction volume of HKD 158 million.
Daiwa released a research report stating that J&T EXPRESS's parcel volume in Southeast Asia grew by 58% year-on-year in the first half of this year, showing strong performance, far exceeding the annual growth target of 30% set at the beginning of the year. The main reasons for the growth are promotional activities from e-commerce platforms, strong growth from new customers such as TikTok, Shein, and TEMU, as well as robust growth in non-platform transaction volume (accounting for 10% of Southeast Asia's transaction volume). The firm has raised its parcel volume forecast for J&T EXPRESS in Southeast Asia for 2025 while maintaining its original gross margin forecast, as the increase in J&T EXPRESS's own vehicles and sorting centers is a long-term positive. At the same time, the firm is optimistic about emerging markets and has raised its parcel volume growth forecast for new markets, expecting the gross margin in 2025 to remain flat year-on-year.
Citi believes that J&T EXPRESS-W's parcel volume in Southeast Asia, mainland China, and new markets grew by 66%, 15%, and 24% year-on-year in the second quarter of this year, mainly benefiting from increased promotional efforts and product diversification from e-commerce platforms (such as TikTok Shop, Temu, and Shein), as well as market share gains achieved through pricing strategies. Additionally, given the strong growth momentum of parcel volume in the Southeast Asian market, Citi expects that J&T EXPRESS's Southeast Asian business will contribute a larger proportion of profits in the near future
