Damo: Upgraded to HK$12.3 the target price of Gekoku Express - W (01519) maintains an “gain” rating

The Zhitong Finance App learned that Morgan Stanley released a research report stating that it maintained the “gain” rating of Jitu Express - W (01519) and raised the target price from HK$11.6 to HK$12.3, corresponding to the 2026 forecast price-earnings ratio by about 20 times. At the same time, the company's adjusted EBITDA forecast for 2026 to 2028 was raised by 2.7%, 7.5% and 8%, respectively. The bank believes that the company's current valuation is attractive, and the prospects for overseas expansion are bright.

The bank said that Jitu Express had strong performance in the first half of the year. Adjusted EBITDA increased 68% year on year, benefiting from a 71% year-on-year increase in business volume in the Southeast Asian market and 120% year-on-year increase in other overseas markets. Management raised its annual guidelines. Despite the normalization of growth rates or trends in the second half of the year, the new guidelines still mean that the Southeast Asian market will grow by 35% to 43%, and other overseas markets are expected to grow by 86% to 120%. The performance is still better than peers focusing on the Chinese market.