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Nomura: Raises J&T Express (01519.HK) Target Price to HK$14; Strong Momentum in Parcel Volume Growth in Southeast Asia and New Markets
Nomura released a research report stating that J&T Express (01519.HK) saw its total parcel volume grow by 14.5% year-over-year in the fourth quarter of last year, compared with a 23% increase in the third quarter. For the full year, total parcel volume rose 22% year-over-year, while fiscal year 2024 recorded 31% growth. The firm noted that J&T Express’s profitability in the Southeast Asian market has increased, with the company’s parcel volume in the region growing 74% year-over-year in the fourth quarter of last year and 68% for the full year—significantly exceeding the firm’s full-year growth forecast of approximately 56%. Consequently, the firm has raised its forecast for the company’s adjusted net profit for fiscal year 2025 by 8%. The firm maintained its “Buy” rating on the company and raised its target price from HK$12.5 to HK$14.
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