UBS: Maintains "Buy" rating on JD Logistics (02618) and raises target price to 17.4 Hong Kong dollars.

UBS released a research report stating that it maintains a "buy" rating on JD Logistics (02618) with a target price raised from 12.3 Hong Kong dollars to 17.4 Hong Kong dollars. Based on stronger revenue and profit margin assumptions, the bank has raised its earnings per share forecast for JD Logistics for 2025 to 2027 by 46 to 57%, expecting the company's total revenue to grow by 14% this year. UBS pointed out that the group's profits last year exceeded expectations, and the profit margin under non-IFRS was higher than market expectations. Management has stated that revenue growth is a top priority, attracting market attention. The bank believes that further improvements in scale and efficiency will continue to support JD Logistics' profitability, with its model showing expected total revenue growth in the mid-teens this year. The bank believes that further expansion of market share will help the company's valuation multiples catch up with its direct competitors.