Analysts at BofA Securities have issued a research report reiterating a "Buy" rating on J&T Express-W (01519), citing strong operational data for the second quarter. The report notes that parcel volume in Southeast Asia grew 63% year-on-year, aligning with the firm's expectations but surpassing investor forecasts of over 50% growth. In China, parcel volume increased by 11% year-on-year, exceeding the firm's projected 9% growth.
The most significant positive surprise came from other markets, where parcel volume surged 136% year-on-year despite disruptions in the Middle East. This performance surpassed the firm's forecast of 100% growth. Due to the robust growth in new markets, BofA Securities has raised its adjusted net profit forecasts for the 2027 and 2028 fiscal years by 2%.
The weakness of the Indonesian Rupiah was largely offset by the strength of the Renminbi. Consequently, the firm has increased its price target by 5%, raising it from HK$11.6 to HK$12.2.
Comments