Nomura released a research report stating that J&T EXPRESS-W (01519) experienced a 27% year-on-year growth in parcel volume in China in the fourth quarter to 5.915 billion parcels, and China's overall parcel volume in 2024 is expected to increase by 29% year-on-year, surpassing the group's full-year growth guidance of 20-25%. Target Price is HKD 7.3, with a rating of 'Buy'.
The bank stated that J&T EXPRESS experienced strong growth in parcel volume in the fourth quarter of 2024 in China and Southeast Asia, while parcel volume in new markets was weak. The group's overall parcel volume in the fourth quarter increased by 33% year-on-year to 7.392 billion parcels. Overall parcel volume is expected to increase by 31% year-on-year in 2024. J&T EXPRESS attributes the robust growth in parcel volume in the fourth quarter to the highly prosperous Chinese express delivery market, outstanding sales growth from PDD Holdings and Douyin, as well as the high growth in single parcel deliveries.
