JD Logistics Conference Call Summary Company Overview - **Company**: JD Logistics (2618.HK) - **Industry**: Logistics and Supply Chain Key Points Revenue Growth Outlook - JD Logistics anticipates a **20-25% year-over-year (yoy)** growth in revenue for FY26, driven by: - Enhanced integrated supply-chain capabilities, focusing on high Average Revenue Per User (ARPU) products [1] - Strong international growth, contributing mid-single-digit revenue currently [1] - Incremental revenue from quick commerce delivery, including food delivery [1] Profit Growth Expectations - Profit is expected to grow at a **25-30% yoy** rate in FY26, outpacing revenue growth due to: - Improved asset utilization and business mix in express delivery [2] - Cost reduction synergies from integration with Deppon, expected to improve in 2H26 [2] - Strong profitability from Kuayue [2] Impact of Oil Prices - The company is closely monitoring the impact of rising oil prices, noting that oil costs from self-operated vehicles account for a low single-digit percentage of revenue [3] - JD Logistics benefits from deploying electric vehicles (EVs), with over **25%** of self-operated vehicles being EVs [3] - If oil prices persist above **US$100 per barrel**, there may be a cost pass-through for the express delivery business [3] International Market Expansion - The international business is expected to sustain strong growth momentum, with warehouse space expanding to **2 million square meters** from **1 million** in 2024 [4] - Collaboration with JD Group's JoyBuy in Europe is underway, with initial testing in the UK, Germany, France, and Benelux [4] - Significant loss narrowing is anticipated in FY26 for the international segment [4] Technological Advancements - JD Logistics is committed to investing in automation technologies and self-owned line-haul vehicles [2] - Deployment of over **1,000 unmanned delivery vehicles** is optimizing courier routes, allowing couriers to focus on more profitable tasks [12] - Increased automation in sorting and warehousing operations is being implemented, with robotics solutions leading to improved labor efficiency [12] Financial Projections - Total revenue projections for JD Logistics are as follows: - FY25: **Rmb 217.1 billion** - FY26: **Rmb 261.2 billion** - FY27: **Rmb 279.2 billion** - FY28: **Rmb 296.1 billion** [13] Risks and Considerations - Key risks include significant revenue reliance on JD Group and concentration in a few industries, which could impact profitability during economic downturns [15] - The company may face growth pressures in the near term due to macroeconomic softness affecting customer spending [15] Investment Recommendation - Goldman Sachs maintains a **Buy** rating on JD Logistics with a target price of **HK$18.70**, indicating an upside potential of **34.1%** from the current price of **HK$13.94** [16] Additional Insights - The Special Express product achieved double-digit revenue growth in 4Q25, driven by higher prices and increased volumes from high-value-added services [12] - The company is focusing on core regions for international expansion, including Europe, the United States, and the Middle East [12] This summary encapsulates the key insights from the JD Logistics conference call, highlighting the company's growth strategies, financial outlook, and potential risks.

Core Viewpoint - Debon Holdings (603056) announced its decision to voluntarily delist from the Shanghai Stock Exchange, effective March 31, 2026, transitioning to the National Equities Exchange and Quotations system for trading [2][3] Group 1: Company Actions - Debon Holdings will terminate its listing on the Shanghai Stock Exchange and will not enter a delisting transition period, as per the exchange's regulations [2] - The company aims to better align with logistics industry trends and enhance coordination within the JD Logistics ecosystem [3] Group 2: Business Performance - Debon started as a freight business and shifted to express delivery in 2013, focusing on large parcel delivery in 2018, but has faced challenges with low operational efficiency and profitability [2] - JD Logistics announced the acquisition of Debon in 2022, leading to significant management changes with JD executives taking over [2] - In 2025, JD Logistics reported a revenue of 100.9 billion yuan from its express and freight services, marking a 5.7% year-on-year increase [3]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表 任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任 何責任。 JD Logistics, Inc. 京東物流股份有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2618） 須予披露的交易的最新進展 擬主動撤回德邦股份於上海證券交易所的上市交易 茲提述本公司日期為2026年1月13日、2026年1月29日及2026年2月25日的公告（「該等公 告」），內容有關撤回德邦股份上市事項及擬現金選擇權。除文義另有所指外，本公告所 用詞彙與該等公告所界定者具有相同涵義。 本公司欣然宣佈，撤回上市事項已獲上海證券交易所批准。於2026年3月24日，德邦宣 佈，其已收到上海證券交易所終止德邦股份上市的決定。根據適用法律法規，德邦股份 將於2026年3月31日於上海證券交易所終止上市。 根據相關規則及規定，德邦已於上海證券交易所網站(www.sse.com.cn )刊發（其中包括） 《股票終止上市暨摘牌的公告》。 承董事會命 京东物流股份有限公司 王振輝先生 執行董事 香港 ...

Core Viewpoint - JD Logistics has been awarded the contract for the delivery service project of finished cards for the Industrial and Commercial Bank of China, leveraging its efficient logistics supply chain to provide nationwide delivery services [3] Group 1: Social Responsibility and Coverage - JD Logistics has achieved full coverage of domestic counties and basic coverage of administrative villages, including remote areas such as Xinjiang, Tibet, Inner Mongolia, and Yunnan, establishing nearly 100,000 service stations in towns and villages to enhance grassroots service [3] - The company has received high recognition from state-owned enterprises and large banks for its contributions in the field of social responsibility, aligning with ESG principles [3] Group 2: Green Development Initiatives - Since 2017, JD Logistics has implemented the "Qingliu Plan" to promote green development across packaging, warehousing, and transportation, with solar photovoltaic capacity on warehouse rooftops reaching 139.22 MW and over 10,000 self-operated new energy vehicles [4] - The company has reduced secondary packaging by over 1 billion units and has developed a carbon management platform, serving over 1,000 global brands [4] - JD Logistics' green practices have received international recognition, including being featured in the World Economic Forum's report on green logistics innovation and being included in the S&P Global 2026 Sustainability Yearbook [4] Group 3: Employee Welfare and Support - JD Logistics has established a system to ensure the rights of frontline employees, including 100% formal labor contracts and social insurance coverage since its inception in 2007 [5] - The company has committed to investing 22 billion in the next five years to build 150,000 "Rider Homes" to provide affordable housing for full-time riders, with some families already benefiting during the recent Spring Festival [6] - JD Logistics has partnered with Guangdong Province to create the first "Rider Academy" in the country, offering career development and skill enhancement support for delivery riders and couriers [6]

Core Viewpoint - The logistics industry in China is transitioning from a phase of rapid expansion to one focused on quality and efficiency, with a significant shift in the competitive landscape of the less-than-truckload (LTL) express delivery sector, moving from price wars to AI empowerment [2][14]. Group 1: Industry Landscape - The market size for freight transport in China is projected to reach 58.7 billion tons by 2025, with a year-on-year growth rate of 3.2% [2]. - The LTL express delivery market was valued at 2.1 trillion yuan in 2020, with a forecasted growth to 2.62 trillion yuan by 2025, reflecting a compound annual growth rate of 6.9% [3][5]. - The market concentration is increasing, with the top 10 companies' market share (CR10) rising from 78.4% in 2020 to an expected 90.5% in 2025 [6][24]. Group 2: Competitive Dynamics - The competitive landscape has evolved from a fragmented market with many players to a more consolidated structure dominated by a few key players, with major companies like SF Express, JD Logistics, and Aneng Logistics gaining significant market shares [6][22]. - The shift from price competition to AI-driven competition is becoming evident, with companies focusing on technological advancements to enhance operational efficiency and service quality [14][30]. - The top players are increasingly leveraging AI technologies to optimize logistics operations, improve service delivery, and reduce costs, marking a significant transformation in the industry [18][19]. Group 3: Business Model Evolution - The LTL express delivery sector has seen a transition from four business models to a focus on two primary models: direct operation and franchising, as the specialized line model diminishes [7][8]. - Companies are increasingly adopting AI technologies for demand forecasting, route optimization, and operational efficiency, which are becoming critical competitive advantages [16][19]. Group 4: Financial Performance and Investment - In 2025, JD Logistics is expected to generate overall revenue of 217.15 billion yuan, with LTL express delivery revenue estimated at 350-400 billion yuan, reflecting a significant contribution to its overall business [13][26]. - SF Express reported a revenue of 33.93 billion yuan in 2023, maintaining its position as the market leader in both revenue and freight volume [22][26]. - The investment in AI capabilities is crucial, with JD Logistics investing 4.136 billion yuan in R&D in 2025, indicating a strong commitment to technological advancement [26][30].

Core Viewpoint - JD Logistics has been awarded a contract by Industrial and Commercial Bank of China for finished card mailing services, leveraging its efficient logistics supply chain to provide nationwide delivery services [1] Group 1: Social Responsibility and ESG Initiatives - The State-owned Assets Supervision and Administration Commission of the State Council has issued guidelines encouraging central enterprises to integrate social responsibility into their supply chain management [1] - JD Logistics has achieved full coverage in domestic counties and basic coverage in administrative villages, including remote areas like Xinjiang and Tibet, establishing nearly 100,000 service stations to enhance grassroots service [1] - The company has received recognition from state-owned enterprises and large banks for its contributions in the field of social responsibility, aligning with ESG principles [1] Group 2: Green Development Practices - Since 2017, JD Logistics has implemented the "Qingliu Plan" to promote green development across packaging, warehousing, and transportation, with solar power capacity reaching 139.22 MW and over 10,000 self-operated new energy vehicles [2] - The company has reduced secondary packaging by over 1 billion units and developed a carbon management platform serving over 1,000 global brands [2] - JD Logistics' green initiatives have been recognized internationally, including being featured in the World Economic Forum's report on green logistics innovation [2] Group 3: Emergency Response and Community Support - JD Logistics has established emergency response teams to ensure timely delivery of disaster relief materials, demonstrating its commitment to community support during crises [3] - The company supports over 1,000 production areas, aiding rural revitalization and increasing farmers' income through its integrated supply chain capabilities [3] Group 4: Employee Welfare and Development - Since its establishment, JD has prioritized employee rights by ensuring all frontline workers have formal labor contracts and receive full social insurance benefits [3] - The company plans to invest 22 billion in the next five years to build 150,000 "Rider Homes" to provide affordable housing for full-time riders [4] - JD has partnered with Guangdong Province to create the first "Rider Academy" in the country, offering career development and skill enhancement for delivery personnel [4]

Investment Rating - The report upgrades JD Logistics (02618) from "In Line with Market" to "Overweight" [1] Core Insights - The report indicates a strong growth in JD Logistics' performance for 2026, partly due to a favorable comparison base, but emphasizes that the trend in profit margins is the primary driver of the company's valuation [1] - The earnings per share (EPS) forecasts for 2026 and 2027 have been raised by 11% and 15% respectively, with the target price increased from HKD 12.8 to HKD 16.2 [1] - JD Logistics is currently trading at a forecasted price-to-earnings ratio of 8 times for 2026, which still presents a discount advantage compared to peers despite recent stock price increases [1]

Group 1 - Morgan Stanley upgraded JD Logistics (02618) rating from "Market Perform" to "Overweight" [1] - Earnings per share forecasts for 2026 and 2027 were raised by 11% and 15% respectively, with the target price increased from HKD 12.8 to HKD 16.2 [1] - The strong growth in JD Logistics' 2026 performance is partly attributed to a favorable comparison base, but profit margin trends are seen as the main driver of the company's valuation [1] Group 2 - The expectation is that profit margins will return to an expansion trajectory in 2026, leading to earnings growth and valuation re-rating, providing upside potential [1] - JD Logistics' current price corresponds to a projected price-to-earnings ratio of 8 times for 2026, which still offers a discount compared to peers despite recent stock price increases [1]

Core Viewpoint - Morgan Stanley upgraded JD Logistics (02618) rating from "Market Perform" to "Overweight" and raised the earnings per share (EPS) forecasts for 2026 and 2027 by 11% and 15% respectively, with a target price increase from HKD 12.8 to HKD 16.2 [1] Group 1 - JD Logistics is expected to experience strong earnings growth in 2026, partly due to a favorable comparison base [1] - The report emphasizes that the trend in profit margins is the primary driver of the company's valuation [1] - The expectation is that as profit margins return to an expansion trajectory in 2026, EPS growth and valuation re-rating will create upward potential [1] Group 2 - JD Logistics is currently trading at a forecasted price-to-earnings ratio of 8 times for 2026, which still presents a discount advantage compared to peers despite recent stock price increases [1]

Core Viewpoint - JD Logistics has shown significant growth in its revenue for 2025, driven by the rapid expansion of its instant delivery services, which is reflected in the stock price increase and positive market sentiment [5]. Group 1: Financial Performance - JD Logistics reported a revenue growth of 18.8% year-on-year for 2025, which is notably higher than the 9.7% growth recorded in 2024 [5]. - The company's stock price increased by 3.84%, reaching HKD 14.06, with a trading volume of HKD 163 million [5]. Group 2: Business Strategy - Starting from Q2 2025, JD Logistics began recruiting and managing full-time delivery riders to enhance its delivery capabilities [5]. - In Q4 2025, the company acquired 100% ownership of a wholly-owned subsidiary of JD Group that was engaged in local instant delivery services, thereby increasing its delivery capacity [5]. Group 3: Market Expansion - JD Group announced the launch of a new online retail brand, Joybuy, in Europe, targeting markets in the UK, Germany, the Netherlands, France, Belgium, and Luxembourg [5]. - JD Logistics is currently operating over 60 warehouses and delivery stations in Europe to support the Joybuy brand [5].