Morgan Stanley's report on June 28th pointed out that excluding contributions from Deppon and Kuayue, JD Logistics' core supply chain business brought in a net income of about 300 million yuan in the first quarter, compared with a net loss of about 700 million yuan in the same period last year. The bank believes that JD Logistics is expected to outgrow JD's direct sales gross transaction volume growth from the income obtained from JD, benefiting from JD reducing the free shipping threshold. The intensification of competition among e-commerce platforms may gradually improve JD's logistics services, supporting the profit margin of JD Logistics' core supply chain business. The bank has raised its non-international financial reporting standards profit forecasts for JD Logistics in the next two years by 39% and 20%, respectively, and expects the non-international financial reporting standards net profit margin to improve to 2.5% this year, surpassing the management's guidance of 1.7% to 2%. The bank has also raised its target price for JD Logistics from HKD 8.9 to HKD 9.5, which is equivalent to a forecast PE ratio of 13 times for fiscal year 2025, and maintained its “in line with the market” rating.