Daiwa: Upgrades Guotu Express target price to HK$9.5, second-quarter performance exceeds expectations.

Morgan Stanley released a research report pointing out that this year, TikTok Shop, which is using third-party logistics, is actively gaining market share, leading to Better Than Expected Operating Performance for Jitu Express in the second quarter. The bank expects Jitu Express to achieve an adjusted net profit of about $235 million in the first half of this year, compared to $63 million in the same period last year. The bank increased its annual adjusted net profit forecast for Jitu Express for 2025 to 2027 by 12%, 24%, and 34% respectively, reflecting Better Than Expected Performance in the Southeast Asian market in the second quarter and the revised growth forecasts for the following years. The target price has been raised from HKD 7.1 to HKD 9.5, and the "In Line with the Market" rating is maintained.