Bank of America Securities: Raise the target price of Best Express-W (01519) to 12.2 Hong Kong dollars, reiterate "buy" rating.

Wisdom Financial APP learned that Bank of America Securities released a research report stating that considering the strong operating data in the second quarter, it reiterated its "buy" rating on ZTO Express-W (01519). The bank stated that the parcel volume in Southeast Asia increased by 63% year-on-year, in line with the bank's expectations but higher than the investors' expectation of over 50% year-on-year growth; the parcel volume in China increased by 11% year-on-year, exceeding the bank's predicted 9% year-on-year growth. The biggest positive surprise came from other markets, with parcel volume in other markets increasing by 136% year-on-year despite disruptions in the Middle East, surpassing the bank's predicted 100% year-on-year growth. The bank raised its adjusted net profit forecast for the fiscal years 2027 to 2028 by 2% due to strong growth in new markets. The weakness of the Indonesian rupiah is roughly offset by the strength of the Chinese yuan. The target price has been raised by 5%, from the original 11.6 Hong Kong dollars to 12.2 Hong Kong dollars.