Citibank: Raising J&T EXPRESS-W (01519) target price to HKD 15, maintaining industry top pick.

Citigroup released a research report stating that the profit forecasts for J&T EXPRESS-W (01519) for the years 2025 to 2027 have been revised upwards by 2%, 5%, and 3% respectively. Based on the acceleration of overseas momentum, the valuation multiple has been increased from the previous forecast of a P/E ratio of 25 times for this year to 30 times. The target price has been raised from HK$12 to HK$15, with a "buy" rating, maintaining its position as a top pick in the industry. J&T Express showed strong growth momentum in overseas business in the fourth quarter of last year, with Southeast Asia and emerging markets performing better than expected, growing by 73.6% and 79.7% respectively. The main drivers have been increased investment in TikTok Shop and further market share gains for J&T Express. The strong performance with a growth rate of 79.7% in emerging markets has mainly benefited from the strong momentum brought by partnerships with TikTok Shop and the Latin American e-commerce platform MELI.