Lyon: Raised target price of JD LOGISTICS (02618) to 17.8 Hong Kong dollars, first quarter performance exceeds expectations.

Lyon released a research report saying that the target P/E ratio of JD Logistics (02618) has been raised from 10 times to 11 times, and the valuation basis has been rolled forward to the mixed EPS of 2026 to 2027. The target price has been raised from 14.6 Hong Kong dollars to 17.8 Hong Kong dollars, with an "outperform" rating. JD Logistics also announced a plan to repurchase up to $1.2 billion of shares over the next four years. The report points out that JD Logistics exceeded expectations in the first quarter, with revenue growing by 29% and non-IFRS net profit increasing by 40% to 1.052 billion RMB. Although factors such as foreign exchange, interest rates, and government subsidies may weigh on second-quarter net profit, the bank expects the growth momentum to continue into the second quarter. JD Logistics and JD International's European business "Joybuy" jointly launched the "Joyexpress" service, which is expected to accelerate the group's overseas business growth. Management revealed that organic sales growth reached double digits in the first quarter of this year, excluding Deppon and instant delivery. The bank has slightly raised its revenue forecast for 2027 and 2028 by 1%, as well as adjusting its net profit forecast by 1% to reflect overseas growth and continued profit margin expansion.