Nomura: J&T EXPRESS-W(01519) sees positive growth in parcel volume in the first quarter, maintaining target price of 7.3 HKD.

Nomura released a research report stating that J&T EXPRESS-W (01519) saw a positive growth in parcel volume in the first quarter of this year. The parcel volume from Southeast Asia saw significant growth, while the parcel volume from China grew steadily. The group's overall parcel volume in the first quarter increased by 31.2% year-on-year to 6.6 billion pieces, accounting for 22% of the bank's full-year forecast. The bank forecasts a 21.5% increase in overall parcel volume by 2025 and maintains a target price of HK$7.3 and a "buy" rating. In China, Jitu Express saw a 26.5% year-on-year increase in parcel volume in the first quarter, reaching 4.985 billion pieces, accounting for 21% of the bank's full-year forecast for 2025 and above the industry average growth rate for the first quarter. Of these, the retail parcel volume averaged 3.5 million pieces per day, a 70% year-on-year increase, accounting for 6% of the nationwide daily parcel volume. In Southeast Asia, the group's first quarter parcel volume increased by 50% year-on-year to 1.538 billion pieces, driven by early Ramadan sales in Indonesia and Malaysia, as well as strong growth from its main e-commerce platform, TikTok, accounting for 26% of the bank's full-year forecast.