Lyon: Jitu Express - W (01519) increases the holdings of overseas operating entities, optimistic about its overseas expansion and reaffirms the “outperform the market” rating

The Zhitong Finance App learned that Lyon released a research report saying that it maintains confidence in the overseas expansion strategy of Jitu Express - W (01519). It is expected that in 2025, the new market sales will reach US$748 million, and the adjusted EBITDA will reach US$36 million; reaffirming the “outperforming the market” rating, with a target price of HK$11.9.

Goku Express recently announced a significant increase in the holdings of its subsidiaries Jet Global and JNT Express KSA, the entities responsible for operating its new market business, involving an amount of up to US$1,056 million. Of this, the initial settlement amount of about US$317 million will be paid from the company's existing cash reserves by the end of this year. The bank believes that this move is critical to the development of Polar Rabbit, as the new market business is expected to become a new growth engine. However, a more concentrated equity structure will help improve decision-making efficiency. It is expected that adjusted EBITDA will reach a break-even balance in 2025. Furthermore, this increase in holdings will also help optimize the company's shareholder structure.