Group 1 - The core point of the news is that Jitu Express-W has been actively repurchasing its shares, with a total of 1,651.10 million shares repurchased this year, amounting to 9,560.83 million HKD [1][2] - On April 1, the company repurchased 1.11 million shares at a price range of 5.520 to 5.570 HKD, totaling 6.1662 million HKD, while the stock closed at 5.530 HKD, down 2.30% for the day [1][2] - Since March 28, the company has conducted share buybacks for three consecutive days, repurchasing a total of 2.47 million shares for a cumulative amount of 13.8784 million HKD, during which the stock price has decreased by 4.33% [1][2] Group 2 - The detailed buyback history shows that the highest repurchase price was 6.140 HKD and the lowest was 5.520 HKD during the recent buyback activities [2] - The company has executed multiple buybacks, with the largest single-day repurchase being 2.10 million shares on March 25, totaling 11,687.1 million HKD [2] - The buyback activity reflects the company's strategy to support its stock price amid market fluctuations [1][2]

Operational Performance - In Southeast Asia, the parcel volume increased by 41% year-on-year, with non-e-commerce parcels becoming a significant growth point for the company[6]. - In China, the parcel volume grew by 29% year-on-year, surpassing industry growth rates, and the company has started to achieve profitability[7]. - The company achieved a global single-day parcel volume exceeding 100 million during the 2024 Double Eleven shopping festival, showcasing its operational capabilities[7]. - The company reported achieving profitability globally in 2024, marking a significant milestone in its operational journey[6]. - In 2024, the company processed a total of 24.65 billion packages, representing a 31.0% increase from 18.81 billion packages in 2023[39]. - The company's market share in Southeast Asia reached 28.6% in 2024, up from 25.4% in 2023, with package volume growing by 40.8% year-over-year[39]. - In China, the company handled 19.80 billion packages in 2024, a 29.1% increase from 15.34 billion packages in 2023, with a market share of 11.3%[39]. - The new market's express delivery industry saw a total package volume of 4.59 billion in 2024, growing by 18.6% year-over-year, and is expected to reach 10.20 billion packages by 2029[35]. Financial Performance - In 2024, the company reported a revenue of $10,259,104 thousand, representing a 15.9% increase from $8,849,251 thousand in 2023[19]. - The gross profit for 2024 was $1,078,215 thousand, a significant recovery from a gross loss of $270,238 thousand in 2022[19]. - Operating profit turned positive at $210,543 thousand in 2024, compared to an operating loss of $1,766,550 thousand in 2023[19]. - The adjusted net profit for 2024 was $200,333 thousand, recovering from a loss of $432,277 thousand in 2023[19]. - The adjusted EBITDA for 2024 was $778,279 thousand, a substantial increase from $146,694 thousand in 2023, indicating improved profitability[82]. - The company’s revenue for the year ended December 31, 2024, reached $10,259,104 thousand, a 15.9% increase from $8,849,251 thousand in 2023[82]. - Express service revenue grew by 23.4% from $8,086.8 million in 2023 to $9,980.3 million in 2024, with total package volume increasing by 31.0% from 18.81 billion to 24.65 billion[87]. - The company reported a net profit of $150 million for 2024, reflecting a 10% increase from the previous year[149]. Market Expansion and Strategy - The company aims to become one of the world's leading express delivery companies within the next ten years, focusing on long-term strategic goals[8]. - The company aims to continue expanding its market presence in Southeast Asia, which is expected to maintain a compound annual growth rate of 7.0% from 2025 to 2029[20]. - The company is focused on innovation and adapting to local cultures to enhance service quality and shareholder returns[14]. - The company plans to enhance its market position in Southeast Asia and China by deepening partnerships with e-commerce platforms and optimizing customer structure[76]. - The company is strategically acquiring land in key transportation hubs to expand its transit centers and optimize routing, thereby improving overall operational efficiency[79]. - J&T Express plans to enhance its logistics network by opening 50 new distribution centers across Southeast Asia in 2025[157]. - The company is exploring potential mergers and acquisitions to further strengthen its market position in the region[157]. Cost Management and Efficiency - The average cost per package in Southeast Asia decreased from $0.67 in 2023 to $0.57 in 2024, reflecting a 14.9% reduction year-on-year[44][46]. - The adjusted EBIT for Southeast Asia reached $302.7 million in 2024, up 48.9% from $203.3 million in 2023, with an adjusted EBIT margin of 9.4%, an increase of 1.7 percentage points[47]. - The company’s competitive pricing strategy, supported by economies of scale and operational efficiencies, has enabled it to maintain a healthy and sustainable profit level in Southeast Asia[47]. - The single ticket sorting cost decreased from $0.09 in 2023 to $0.05 in 2024, indicating improved operational management[98]. - The fulfillment cost increased by 21.5% from $4,172.9 million in 2023 to $5,070.0 million in 2024, accounting for 49.4% of total revenue in 2024[106]. Technological Advancements - The company has developed a strong digital infrastructure, integrating self-built cloud computing and third-party services to empower operations in 13 countries[63]. - The company has invested in automation equipment and AI route planning technology, aiming to reduce costs in the collection and delivery process while enhancing efficiency[66]. - The company established an intelligent route planning and resource management system, optimizing transportation routes and reducing operational costs, leading to improved delivery efficiency[69]. - The company launched a "timeliness complaint" module in 2024, which monitors multidimensional data to assess delivery risks, effectively reducing complaint rates and improving delivery timeliness[71]. - The company has established a universal technology framework, JMS system, to enhance digital systems across markets, ensuring high-quality customer service and efficient financial management[62]. Corporate Governance and Management - The company has a competitive compensation structure to attract and retain high-quality talent, maintaining a stable core management team[170]. - The management team emphasizes employee training and skill development, fostering a culture that supports local market needs and strategic initiatives[75]. - The board includes independent directors with significant experience in finance and management, enhancing the company's governance[146]. - The company is committed to maintaining a robust financial position with no indications of default on its investments[134]. Sustainability and Social Responsibility - J&T Express is focusing on sustainability initiatives, with plans to reduce carbon emissions by 30% by 2026[157]. - The company made approximately USD 1.9 million in charitable donations during the reporting period[169]. Risks and Challenges - The company faces significant risks including reliance on the e-commerce sector, competition, and potential disruptions in logistics and technology systems[173]. - The company’s operations are significantly influenced by the development of logistics infrastructure and government policies affecting the e-commerce industry[173].

Investment Rating - The report assigns an initial recommendation of "Buy" for J&T Express (01519.HK) with a target price of HKD 7.69, representing a potential upside of 36% from the current price of HKD 5.64 [2]. Core Insights - J&T Express is a global integrated logistics service provider that achieved adjusted profitability in 2024, with a net profit of USD 200 million and an adjusted net profit margin of 2.0%. This marks a significant turnaround from a loss of USD 430 million in 2023 [5][34]. - The company operates in three major markets: Southeast Asia, China, and new markets, with Southeast Asia being the primary profit contributor, while the Chinese market shows rapid improvement in profitability [5][50]. Summary by Sections Company Overview - Founded in 2015, J&T Express has rapidly expanded its logistics network across 13 countries, including Southeast Asia and China, utilizing a flexible regional agency model that enhances operational efficiency and reduces capital requirements [17][31]. Financial Performance - In 2024, J&T Express reported total revenue of USD 10.26 billion, a year-on-year increase of 15.9%, with a compound annual growth rate (CAGR) of 60.8% from 2020 to 2024. The adjusted EBITDA reached USD 780 million, reflecting a 431% increase year-on-year [6][35]. - The company achieved adjusted EBIT of USD 300 million in 2024, marking its first annual profit, with a significant improvement in cash flow from operations, which rose to USD 810 million [37][38]. Market Analysis China Market - J&T Express has established a strong presence in China, achieving a market share of 11.3% with a total volume of 19.8 billion parcels in 2024. The company’s revenue in China reached USD 6.39 billion, growing by 22.2% year-on-year [25][34]. - The growth in the Chinese market is attributed to strategic acquisitions and partnerships, particularly with Pinduoduo, which provided a substantial volume of business during its initial expansion [62][68]. Southeast Asia Market - The Southeast Asian market remains the core profit driver for J&T Express, with a market share of 28.6% and a total parcel volume of 4.56 billion in 2024. Revenue from this region was USD 3.22 billion, up 22.3% year-on-year [9][23]. - The company has maintained its leading position in Southeast Asia since 2020, benefiting from strong economic growth and a favorable demographic profile [9][50]. New Markets - J&T Express is expanding into new markets, including the UAE, Saudi Arabia, Brazil, Mexico, and Egypt, where it has achieved a market share of 6.1% with a parcel volume of 280 million in 2024. Revenue from these markets was USD 580 million, reflecting a year-on-year growth of 76.1% [10][26]. Profitability and Valuation - The report forecasts J&T Express's net profits for 2025-2027 to be USD 333 million, USD 538 million, and USD 761 million, respectively, with corresponding earnings per share (EPS) of USD 0.04, USD 0.06, and USD 0.08 [11][12]. - The valuation is based on a segmented approach, considering the differences in market dynamics and profitability across the three regions, leading to a target market capitalization of HKD 69 billion by 2025 [12][12].

Investment Rating - The report maintains a "Buy" rating for the company [1][5] Core Views - The company achieved a significant improvement in profitability in 2024, with total revenue reaching USD 10.259 billion, a year-on-year increase of 15.9%, driven by strong global parcel volume growth [8] - Adjusted EBITDA rose to USD 778 million, reflecting a substantial increase of 430.5%, indicating enhanced profitability [8] - The company turned a profit with a net income of USD 114 million in 2024, compared to a loss of USD 1.156 billion in 2023 [8] - The report highlights the continued improvement in domestic business profitability and the ongoing increase in overseas market share [5] Financial Performance Summary - The company’s revenue for 2024 was USD 10.259 billion, with a growth rate of 15.9% [7] - Adjusted EBITDA for 2024 was USD 778 million, showing a significant increase of 430.5% [8] - The net profit for 2024 was USD 114 million, a turnaround from a loss of USD 1.156 billion in 2023 [8] - The operating cash flow for 2024 reached USD 807 million, a year-on-year increase of 136.1% [8] Parcel Volume and Cost Control - The global parcel volume reached 24.65 billion pieces in 2024, a year-on-year increase of 31.0% [8] - The cost per parcel in Southeast Asia decreased from USD 0.67 to USD 0.57, and in China from USD 0.34 to USD 0.30, demonstrating effective cost control [8] - Despite a slight decline in revenue per parcel due to competitive pricing adjustments, overall profitability improved due to cost reductions [8] Regional Performance - Southeast Asia remains the core market with a parcel volume of 4.56 billion pieces and a market share of 28.6% [8] - In China, the parcel volume reached 19.8 billion pieces, with a market share of 11.3%, ranking sixth in the industry [8] - New markets, including the Middle East and South America, saw revenue growth of 76.1% to USD 576 million, indicating successful market expansion efforts [8]

Investment Rating - The report maintains a "Buy" rating for the company [1][5] Core Views - The company achieved a significant improvement in profitability in 2024, with total revenue reaching USD 10.259 billion, a year-on-year increase of 15.9%, driven by strong global parcel volume growth [8] - Adjusted EBITDA rose to USD 778 million, reflecting a substantial increase of 430.5%, indicating enhanced profitability [8] - The company turned a profit with a net income of USD 114 million in 2024, compared to a loss of USD 1.156 billion in 2023 [8] - The report highlights the continued improvement in domestic business profitability and the ongoing increase in overseas market share [5] Financial Performance Summary - The company’s revenue is projected to grow from RMB 63.056 billion in 2023 to RMB 109.376 billion by 2027, with a compound annual growth rate (CAGR) of approximately 13% [7] - The adjusted EBITDA is expected to improve significantly from a loss of RMB 4.107 billion in 2023 to a profit of RMB 11.567 billion by 2027 [7] - The net profit is forecasted to increase from a loss of RMB 7.845 billion in 2023 to RMB 6.341 billion by 2027, representing a growth rate of 240.1% in 2025 [7] - Earnings per share (EPS) are expected to rise from a loss of RMB 0.88 in 2023 to RMB 0.71 by 2027 [7] Market and Operational Insights - The company’s global parcel volume reached 24.65 billion pieces in 2024, marking a year-on-year growth of 31.0% [8] - The Southeast Asia market remains a core area, with parcel volume reaching 4.56 billion pieces and a market share increase to 28.6% [8] - In China, parcel volume reached 19.8 billion pieces, with a market share of 11.3%, ranking sixth in the industry [8] - The company has made strategic price adjustments to expand its market share in Southeast Asia, which has slightly impacted single-ticket revenue but has improved cost efficiency [8]

Investment Rating - The report maintains a "Buy" rating for the company [10]. Core Insights - In 2024, the company's revenue is projected to reach $10.26 billion, representing a year-on-year growth of 15.9%. Adjusted net profit is expected to be $110 million, a significant turnaround from a loss of $1.16 billion in the previous year, marking the first time the company has achieved profitability [2][8]. - The company's market share in Southeast Asia is rapidly increasing, with a 40.8% year-on-year growth in business volume, reaching 4.56 billion parcels. The market share has improved by 3.2 percentage points to 28.6%, solidifying its leading position [10]. - The company is actively adjusting its operational strategies in new markets, leading to a significant increase in per-parcel profit margins [10]. Summary by Sections Southeast Asia Market - Business volume in Southeast Asia is expected to grow by 40.8% to 4.56 billion parcels in 2024, with market share increasing to 28.6%. The per-parcel gross profit remains stable at $0.14, with total gross profit rising by 34.6% to $630 million due to cost reductions in sorting and transportation [10]. China Market - In China, business volume is projected to grow by 29.1% to 19.8 billion parcels in 2024, benefiting from a faster growth rate than the industry average. The per-parcel gross profit is expected to increase by $0.02, resulting in a total gross profit of $420 million [10]. New Markets - Business volume in new markets is anticipated to grow by 22.1% to 28 million parcels, with market share slightly increasing to 6.1%. The per-parcel gross profit is expected to rise by $0.10 to $0.11, driven by a shift towards local non-e-commerce parcels [10]. Profitability and Future Outlook - The company is expected to leverage its unique agency model to capitalize on the global e-commerce trend, enhancing market share and profitability. Projections for net profit are $380 million, $616 million, and $859 million for 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 17.7, 11.0, and 7.9 [10][11].

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [6] Core Insights - The company achieved a net profit of $110 million in 2024, marking its first profit after a loss of $1.16 billion in 2023, exceeding expectations [1] - Total revenue for 2024 reached $10.26 billion, a year-on-year increase of 15.9%, with core express service revenue growing by 23.4% to $9.98 billion [1] - The company processed 24.65 billion packages in 2024, a 31% increase year-on-year, and maintained a strong cash flow with $816 million from operating activities [2][1] Summary by Sections Financial Performance - In 2024, the company reported a gross profit of $1.08 billion, up 128% year-on-year, and an adjusted EBITDA of $780 million, a significant increase of 430.5% [1] - The adjusted EBITDA margin improved to 6.7% from 0.6% in 2023, indicating enhanced profitability [5] Market Performance - In Southeast Asia, the company maintained its leading market share at 28.6%, with revenue of $3.22 billion, a 22.3% increase year-on-year [3] - The company processed 4.56 billion packages in Southeast Asia, a 40.8% increase, solidifying its position as the top express operator in the region [3] Operational Efficiency - The company expanded its network to approximately 19,100 outlets and operated 238 transit centers by the end of 2024 [2] - In China, the company achieved an adjusted EBITDA of $430 million, marking its first profitability in this market [5] Future Projections - The company expects to achieve net profits of $398 million, $669 million, and $893 million for the years 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 18.3, 10.9, and 8.2 [12]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 7.50 HKD [8][9]. Core Insights - The company has achieved a turning point in its performance, moving towards a profitable cycle, with a revenue increase of 15.9% year-on-year to 10.3 billion USD in 2024 and a net profit of 1.0 billion USD, surpassing expectations [1][5]. - The Southeast Asian business is expected to continue benefiting from the increasing penetration of e-commerce, while the Chinese operations are projected to see significant profit growth due to a low base effect [1][2][3]. - The new markets are anticipated to achieve EBITDA breakeven in 2025, following a reduction in losses in 2024 [4]. Summary by Sections Southeast Asia - In 2024, the Southeast Asian segment achieved EBIT of 300 million USD, a year-on-year increase of 48.9%, driven by a 40.8% increase in parcel volume and a market share increase of 3.2 percentage points to 28.6% [2]. - The average revenue per parcel and cost per parcel decreased by 13.2% and 15.1% respectively, leading to a slight decline in gross profit margin [2]. China - The Chinese segment turned profitable in 2024 with EBIT of 150 million USD, compared to a loss of 240 million USD in the previous year, attributed to increased scale and improved capacity utilization [3]. - Parcel volume grew by 29.1%, outpacing the industry growth rate of 21.5%, with a market share increase to 11.3% [3]. New Markets - The new markets (Saudi Arabia, UAE, Mexico, Brazil, and Egypt) reported a reduced loss of 80 million USD in 2024, with a 22.1% increase in parcel volume and a market share increase to 6.1% [4]. - The average revenue per parcel increased by 44.2%, while the cost per parcel rose by 37.5%, resulting in a significant increase in gross profit [4]. Financial Projections - The report maintains net profit forecasts of 350 million USD for 2025 and 650 million USD for 2026, with an additional forecast of 870 million USD for 2027 [5]. - The projected EPS for 2025-2026 is 0.06 USD, with a PE ratio of 16.0x, reflecting the company's higher-than-industry growth rate [5].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of $10,259.1 million, a 15.9% increase from $8,849.3 million in 2023[5]. - The gross profit for the same period was $1,078.2 million, representing a significant increase of 128.0% compared to $472.8 million in the previous year[5]. - The adjusted EBITDA reached $778.3 million, up 430.5% from $146.7 million in 2023[5]. - The adjusted net profit for the year was $113.7 million, a significant recovery from a loss of $1,156.4 million in the previous year[5]. - The company reported a net profit attributable to shareholders of $100.6 million for 2024, a recovery from a net loss of $1,100.99 million in 2023[185]. - Basic earnings per share for 2024 were $1.2, compared to a loss of $26.3 per share in 2023, reflecting a positive turnaround in profitability[185]. Revenue Growth - The Southeast Asia segment generated revenue of $3,220.9 million in 2024, up from $2,633.4 million in 2023, indicating strong growth in this region[104]. - The China segment's revenue increased from $5,229.3 million in 2023 to $6,388.1 million in 2024, showcasing robust performance in the Chinese market[104]. - New market revenue grew by 76.1% from $326.8 million in 2023 to $575.6 million in 2024, with parcel volume increasing by 22.1%[118]. - Express service revenue grew by 23.4% from $8,086.8 million in 2023 to $9,980.3 million in 2024, primarily due to increased service revenue from the growth in express business[111]. Package Volume and Market Share - The company processed a total of 24.65 billion packages in 2024, a 31.0% increase from 18.81 billion packages in 2023[10]. - The total package volume in Southeast Asia reached 4.5632 billion in 2024, compared to 3.2400 billion in 2023, marking a year-on-year growth of 40.8%[38]. - In China, the company processed 19.8012 billion packages in 2024, a 29.1% increase from 15.3414 billion packages in 2023[34]. - The company's market share in Southeast Asia increased to 28.6% in 2024 from 25.4% in 2023[10]. - The company's market share in China increased to 11.3% in 2024, up from 10.6% in 2023, reflecting a 0.7 percentage point gain[47]. Cost Management and Efficiency - The average cost per package in Southeast Asia decreased from $0.67 in 2023 to $0.57 in 2024, demonstrating effective cost management strategies[44]. - The single ticket cost has decreased from $0.34 in 2023 to $0.30 in 2024, reflecting ongoing operational optimization[54]. - The overall single-piece cost in China decreased from $0.34 in 2023 to $0.30 in 2024, due to ongoing operational optimization[124]. - The company achieved a gross profit margin improvement from 5.3% in 2023 to 10.5% in 2024, with total gross profit rising from $472.8 million to $1,078.2 million[138]. Operational Improvements - The average delivery time for packages in Southeast Asia decreased by 10.5% in 2024 compared to 2023, reflecting improved operational efficiency[42]. - The company processed over 24.0 million packages in a single day during the 2024 Double Twelve shopping festival, showcasing its strong logistics network and capacity flexibility[42]. - The company aims to enhance service quality and customer satisfaction by reducing average delivery times and increasing the proportion of same-day and next-day deliveries[52]. - The company has established an intelligent route planning and resource management system, optimizing transportation routes to reduce costs and improve efficiency[81]. Market Expansion and Strategy - The company plans to continue expanding its market presence in new regions, including Saudi Arabia, UAE, Mexico, Brazil, and Egypt[8]. - The company is actively expanding its non-e-commerce customer base, including social media businesses and enterprises, which are expected to contribute higher pricing and profitability[101]. - The company is focusing on building strong partnerships with global e-commerce platforms to capitalize on the growth of cross-border e-commerce logistics[98]. - The company aims to enhance its network coverage and capacity by investing in transit center facilities and increasing the number of vehicles to meet rising market demands[95]. Technology and Innovation - The company is investing heavily in automation equipment and AI route planning technology to reduce operational costs and improve efficiency in the collection and delivery process[77]. - The "Hello Boss" application has achieved over 90% coverage in China, with plans to expand into Southeast Asia, significantly enhancing end-point digitalization and operational efficiency[76]. - The company has developed a proprietary address digitization platform, significantly improving address analysis accuracy and reducing misdelivery rates, particularly in Southeast Asia[83]. - The company is exploring the application of cutting-edge technologies such as unmanned vehicles and drones in the collection and delivery process[77]. Financial Position and Liabilities - Total liabilities increased to $4,771,958 thousand in 2024 from $4,121,815 thousand in 2023, indicating a rise in financial obligations[169]. - The group's debt-to-asset ratio as of December 31, 2024, is 65.4%, up from 62.4% in 2023[155]. - Cash generated from operating activities in 2024 is $807.4 million, compared to $342.0 million in 2023, indicating improved cash flow management[154]. - As of December 31, 2024, the group's cash and cash equivalents total $1,596.9 million, with total borrowings under current liabilities amounting to $262.6 million[154].

Company Repurchase Activity - The company has conducted share repurchases for 4 consecutive days since December 27, 2024, totaling 3.93 million shares with a cumulative repurchase amount of HKD 23.82 million [1] - On January 2, the company repurchased 1.03 million shares at a price range of HKD 5.91 to HKD 6.01 per share, amounting to HKD 6.13 million [2] Stock Performance - The stock closed at HKD 5.86 on the day of the latest repurchase, representing a 4.40% decline [1] - The stock's trading volume for the day reached HKD 68.40 million [1] - During the repurchase period, the stock experienced a cumulative decline of 6.24% [3]