Nomura: Initiates Coverage on J&T EXPRESS-W(01519) with a "Buy" Rating and a Target Price of HK$7.3

Nomura released a research report stating that J&T EXPRESS-W (01519) saw a 27% year-on-year increase in parcel volume in China in the fourth quarter to 5.915 billion pieces. The overall parcel volume in China in 2024 is expected to increase by 29%, exceeding the group's full-year growth guidance of 20-25%. The target price is HKD 7.3 with a "buy" rating. The bank indicated that the parcel volume growth in China and Southeast Asia in the fourth quarter of 2024 was strong, while the parcel volume in new markets was weaker. The group's overall parcel volume in the fourth quarter increased by 33% year-on-year to 7.392 billion pieces. The overall parcel volume in 2024 is expected to increase by 31%. The steady growth in parcel volume in the fourth quarter of J&T EXPRESS-W is attributed to the highly prosperous express delivery market in China, notable sales growth from Pinduoduo and Douyin, and strong growth in single parcels.