HK Stock Market Move | J&T EXPRESS-W(01519) rises by over 5% again in the third quarter, exceeding expectations for business volume in Southeast Asia and new markets.

J&T EXPRESS-W(01519) rose by more than 5% again, reaching a 4.42% increase to 10.64 Hong Kong dollars as of the time of writing, with a trading volume of 2.11 billion Hong Kong dollars. On the news front, J&T Express recently released third-quarter operating data. Overall, the volume of parcels reached approximately 7.68 billion, with a daily average volume of 83.4 million, a year-on-year increase of 23.1%. Among them, the parcel volume in the Southeast Asian market reached 1.9968 billion, a staggering increase of 78.7% year-on-year; the parcel volume in the Chinese market was 5.5758 billion, an increase of 10.4% year-on-year; and in new markets, the parcel volume in the third quarter was 1.042 billion, an increase of 47.9% year-on-year. Daiwa Securities released a research report stating that the express delivery market in Southeast Asia has entered a new development stage, with intensified platform competition and market share integration. Considering J&T's market positioning and competitive costs, they believe the company can have an advantage in the growth phase. As for the Chinese market, with the industry pushing back against internal competition, the average price in the third quarter improved seasonally, but the growth in parcel volume slowed, also increasing the unit cost. Therefore, the management maintains a neutral to slightly optimistic view on the domestic business for the whole year. Considering J&T's continuous optimization of the domestic customer structure, the bank maintains a cautious view on the impact of the anti-internal competition actions on profitability.