BOC International: Raising the target price of JD Logistics (02618) to HK$16.3, the profit for the third quarter is expected to exceed expectations

The Zhitong Finance App learned that BOC International published a report stating that it raised the target price of JD Logistics (02618) from HK$11.3 to HK$16.3 based on a recovery in industry investment sentiment and an increase in the valuation center, maintaining a “buy” rating.

According to the bank, JD Logistics's revenue for the third quarter is expected to increase 6% year on year to 44.2 billion yuan, in line with previous institutional and market expectations. The year-on-year growth rate is 8% compared to the next quarter. The trend is in line with social retail sales. BOC International said that the adjusted net profit of JD Logistics is expected to be RMB 1.09 billion, up 29% year on year, up 15% from the bank's previous forecast, and 51% higher than the market forecast of RMB 720 million; the adjusted net profit margin is expected to be 2.5%, up 50 basis points year on year; it is expected that the profit optimization trend brought about by improved refined management capabilities will continue, increasing the adjusted net profit forecast for the whole year by 19% to RMB 6.1 billion, corresponding to a net profit margin of 3.4%.

As mentioned in the report, the bank believes that Taobao announced that it will connect the 2024 Double Eleven campaign to JD Logistics. This move will benefit the company's business volume growth. Specific cooperation rules have yet to be implemented. It is expected that the target penetration rate customers are highly compatible with SF Express, and the revenue growth prospects for 2025 can be expected.