Citigroup has released a research report stating that JD LOGISTICS' (02618) fourth-quarter performance for last year largely aligned with expectations. Revenue met projections, while adjusted profit slightly exceeded the bank's forecast, primarily due to tax benefits instead of an anticipated tax expense. Considering that profit growth is expected to exceed 20% in 2026 while valuation remains reasonable, Citigroup reaffirmed its "Buy" rating on JD LOGISTICS with a target price of HK$17. The bank anticipates that organic growth will be slower in the first quarter of 2026. However, as the base normalizes and utilization rates potentially improve, growth momentum is expected to gradually accelerate thereafter. Integration of food delivery and instant delivery services is projected to contribute inorganic revenue in the first half of 2026.
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