BOCOM INTL: Maintains "Buy" Rating on JD LOGISTICS (02618) with target price raised to HK$18

BOCOM INTL has released a research report stating that the target price of JD LOGISTICS (02618) has been raised by 10.4%, from 16.3 Hong Kong dollars to 18 Hong Kong dollars, maintaining a "buy" rating. The bank stated that JD LOGISTICS' third quarter revenue in 2024 met expectations, with profits significantly better than expected. Revenue increased by 7% year-on-year, with internal revenue/external integration/external other revenue increasing by 8%/1%/8% year-on-year. Adjusted net profit margin was 5.8%, the highest quarterly level since listing. The bank expects JD LOGISTICS profit margin to enter a relatively stable phase. It maintains 2024 full-year revenue growth and raises adjusted net profit by 30% to 7.9 billion Chinese yuan, corresponding to a profit margin of 4.4%. It forecasts adjusted net profit/profit margin of 2.2 billion yuan/4.4% in the fourth quarter. It is expected that the company's profit margin will enter a relatively stable phase in 2025, although there is still room for improvement in cost reduction and efficiency enhancement measures, the company may increase investment to drive revenue growth. In addition, income tax will also enter a normal payment state in 2025.