Industrial: Southeast Asian and Latin American e-commerce markets are expected to see double-digit growth. Recommend keeping an eye on J&T EXPRESS-W (01519).

Industrial released a research report stating that middle-income countries have a good environment for e-commerce development and express logistics industry development, making it more friendly for new entrants. The bank predicts that in the near future, the e-commerce market in Southeast Asia and Latin America is expected to grow at double-digit rates, with the express market expected to achieve a growth rate of around 20%. The main potential in Southeast Asia lies in its trends, currently benefiting from economic development and e-commerce investment, with a positive trend that may even accelerate. It recommends paying attention to J&T EXPRESS-W (01519). Industrial's main points are as follows: Middle-income countries are fertile ground for express logistics industry Middle-income countries have a good environment for e-commerce development because of underdeveloped social distribution industry, low labor costs, strong expansion capabilities of e-commerce, and a social environment that values cost-effectiveness more. The increase in e-commerce penetration rate over the past few years has been significantly higher in middle-income countries than in other types of countries. Middle-income countries are also a more favorable environment for express logistics industry development, not only due to the positive development opportunities with e-commerce, but also because the underdeveloped express logistics market is more friendly to new entrants. Southeast Asia and Latin American markets have good opportunities, with express demand expected to maintain a compound growth rate of 20% for a long time Besides both being mainly made up of middle-to-upper income countries, Southeast Asian countries have rapid economic development, steady increase in e-commerce penetration rates, and active investments in e-commerce in Brazil and positive trends in Mexico, all having good development prospects. It is expected that in the near future, the e-commerce markets in both regions will see double-digit growth, with the express market expected to achieve a growth rate of around 20%. The main potential in Southeast Asia lies in its trends Indonesia's e-commerce market has achieved an enviable penetration rate of nearly 30%, second only to China, the UK, and South Korea among major economies. The purchasing power and e-commerce penetration rates in other major Southeast Asian markets still have a lot of room for development. Currently benefiting from economic development and e-commerce investments, the trend is positive, and there may even be a certain acceleration trend. It is expected that this trend will continue for a long time. In the next few years, the growth rate of express business in Southeast Asia is expected to maintain a level of around 20%, with the ratio of business volume to China in 2029 expected to increase to around 15%, with populations, per capita consumption, e-commerce penetration rates, and parcel amounts being approximately 45%, 50%, 50%, and 70% of China's, respectively. The main potential in Latin America lies in its linkage Currently, the average e-commerce spending in Latin America's two countries is high, but the volume of express business is limited. With active investments in e-commerce, the positive cycle between e-commerce and express is expected to accelerate, driving the express market into a period of high growth, with the growth rate of express business volume expected to approach 20% in the next few years. It recommends paying attention to Jitu Express, with a foundation in ecology, riding the wind In addition to the opportunities in Southeast Asia and Latin America, the express delivery industry has high barriers to entry and high value, especially from an international perspective. The development of Chinese-owned overseas e-commerce platforms is an opportunity for Chinese-owned express delivery companies. At the same time, innovation is the driving force, and emerging e-commerce platforms are not expected to build their own express delivery services. In the long run, Jitu has both local and international ecological capabilities, which, in addition to being the foundation of its success, are also the source of its non-replicable characteristics. The ecological capabilities come from the "fundamental" corporate culture, which is long-term oriented and reduces the risk of cooperation with large clients. In the short and medium term, Jitu's comparative advantages are obvious, ranking first in the Southeast Asian market for six consecutive years; with strong growth capabilities, the regions it currently participates in - Southeast Asia, China, and Latin America - are all high-potential markets. Not to be ignored: 1) The scale and social value of Jitu's express network and its ecosystem; 2) Jitu's layout and potential for non-e-commerce items; 3) Seizing opportunities in developed markets. Risk warning: significant fluctuations in exchange rates and oil prices; decline in e-commerce growth rates; worsening global economic and trade situation.