CICC: Raises target price of JD LOGISTICS (02618) to 19.4 Hong Kong dollars, beating first-quarter performance expectations and initiating shareholder returns.

CICC released a research report stating that it maintains its profit forecast for JD LOGISTICS (02618) in 2026 and 2027, with non-IFRS net profits expected to be 9.74 billion yuan and 10.77 billion yuan in 2026 and 2027. The company's stock rating is maintained as "outperform industry", but due to expectations of future profit and shareholder return growth, and considering market risk preference, the target price is raised by 22% to 19.4 Hong Kong dollars. JD LOGISTICS outperformed the bank and market expectations in the first quarter. Revenue increased by 29% year-on-year to 60.6 billion yuan; net profit increased by 95% year-on-year to 0.88 billion yuan; non-IFRS net profit increased by 40.1% year-on-year to 1.05 billion yuan. The better-than-expected performance in the first quarter is mainly driven by accelerated overseas business expansion, deepening of customer cooperation in the supply chain business, and optimization of courier service to drive revenue growth. The report pointed out that in the first quarter, the company's integrated supply chain customer revenue increased by 25.9% year-on-year to 29.2 billion yuan, of which revenue from JD Group increased by 32% year-on-year to 19.4 billion yuan, mainly benefiting from accelerated overseas business expansion and steady growth of retail main categories; revenue from external integrated supply chain customers increased by 15.5% year-on-year to 9.8 billion yuan, the company deepened strategic cooperation with leading customers in various industries, achieving an average revenue per customer growth of 7% to 144,000 yuan, and a 7.5% year-on-year increase in the number of customers to 68,000. Revenue from other customers increased by 32% year-on-year to 31.4 billion yuan, mainly benefiting from M&A, as well as courier service optimization, and double increase in volume and price. The report also mentioned that the company has initiated shareholder returns, setting up trust and stock repurchase plans, demonstrating confidence in long-term development and shareholder returns. The company has set up a trust plan to repurchase stocks in the open market, aiming to eliminate the dilutive impact of ESOP on equity; in addition, the board of directors has approved the repurchase of company shares for up to 1.2 billion US dollars in the open market within 48 months from the approval date.