HK Stock Market Move | J&T EXPRESS-W(01519) intraday rose nearly 3%, the company seizes the opportunity of the growth of social e-commerce and provides CKH HOLDINGS with a profit contribution.

J&T EXPRESS-W(01519) rose nearly 3% intraday, rising 2.65% to HK$5.81 by the time this article was written, with a trading volume of HK$16.996 million. Huatai released a research report stating that they are optimistic about the future development of J&T Express. Overseas, the expansion of cross-border e-commerce and local e-commerce, as well as the increase in e-commerce penetration, will drive high growth in the express delivery industry and high profitability per ticket, providing CKH HOLDINGS with a reliable source of income. In terms of domestic market, China has the largest express delivery market in the world, with a large volume of parcels and strong performance sensitivity. As a rising star, J&T Express will seize the opportunity of social e-commerce growth and is expected to continue to narrow the gap with leading companies and stabilize its position in the domestic market. Furthermore, the company predicts that J&T Express will achieve net profits of $80 million, $350 million, and $650 million in 2024 to 2026, with a compound annual growth rate of 178.6% within that period. Nomura believes that the company is diversifying the sources of parcel volume in the Chinese express delivery market, continuously expanding and strengthening its network infrastructure in China, with a coverage rate of 99.55% in cities and counties and 52.3% in rural areas. At the same time, the terminal scale within the J&T Express network has exceeded 32,000. The group's management believes that this will not only increase the visibility of the brand among terminal consumers but also reduce fulfillment costs by 15%.