J&T Global Express: Strong Growth in Southeast Asia and New Markets Amidst Competitive Pressures

In a report released on April 10, Wayne Fung from CMB International Securities maintained a Buy rating on J&T Global Express Limited (1519 – Research Report), with a price target of HK$6.90.

Wayne Fung’s rating is based on J&T Global Express Limited’s impressive growth in parcel volume, particularly in the Southeast Asia market, where the company experienced a 50% year-over-year increase driven by early Ramadan sales promotions and strong performance from platforms like TikTok and Temu. Despite the intense price competition in China, J&T managed to achieve a 27% increase in volume, supported by enhanced brand equity and significant growth in higher-value reverse parcel and individual orders.
Furthermore, J&T’s expansion into new markets such as Brazil and Mexico contributed to a 19% volume growth, aligning with their full-year growth targets. Although the earnings forecast has been adjusted downward due to competitive pricing pressures, Wayne Fung remains optimistic about J&T’s competitive edge and potential for cost reduction, maintaining a Buy rating with a revised target price, reflecting a more conservative outlook.

1519’s price has also changed moderately for the past six months – from HK$6.430 to HK$5.140, which is a -20.06% drop .