DA Morgan: Upped JD Logistics' target price to HK$16.2, upgraded rating to "Buy"

Morgan Stanley released a research report stating that JD Logistics is expected to achieve strong growth by 2026, partly due to the base effect, but the profit margin trend is believed to be the main factor driving its valuation. The bank expects the company's revenue to grow by 22% in 2026, higher than the 19% in 2025, with on-demand delivery business being the main growth driver; the net profit margin is expected to increase from 3.6% in 2025 to 3.7% in 2026, and further expand to 3.8% in 2027. The bank has raised the company's earnings per share forecast for this year and next year by 11% and 15% respectively, with a target price raised from 12.8 Hong Kong dollars to 16.2 Hong Kong dollars. Considering the attractive valuation, the rating has been upgraded from "inline with the market" to "buy".