Core Insights - J&T Express (1519.HK) reported a strong performance for the first half of 2025, with total revenue reaching $5.5 billion, a year-on-year increase of 13.1%, and adjusted net profit of $156 million, more than doubling from the previous year with a growth rate of 147.1% [1][2] Overseas Growth - The significant profit increase for J&T Express is largely attributed to its overseas operations, particularly in Southeast Asia, where package volume surged by 57.9% and revenue grew by 29.6% [3][7] - In Southeast Asia, J&T Express's market share rose from 27.4% to 32.8%, gaining 5.4 percentage points, while competitors lost market share [10][11] - The company achieved this growth without excessive spending, reducing its single-package cost by 16.7% from $0.60 to $0.50, allowing for competitive pricing and increased order volume [12][13] - J&T Express also reported its first adjusted EBITDA profit in new markets like the Middle East and Latin America, transitioning from a loss of $7.84 million to a profit of $1.57 million [14] Domestic Operations - In the highly competitive Chinese market, J&T Express handled 10.6 billion packages, a 20.0% increase, slightly above the industry average growth of 19.3% [23][24] - The company maintained its market share at 11.1% and improved its ranking from sixth to fifth, despite a 7.7% decline in average prices [24][25] - J&T Express's strategy focused on maintaining profitability by managing costs effectively, with single-package revenue decreasing from $0.34 to $0.30, while costs fell from $0.32 to $0.28, effectively offsetting the impact of price competition [26][27] - The company implemented operational efficiencies through scale effects, refined management, and technological investments, operating 270 automated sorting devices and 600 unmanned logistics vehicles by mid-2025 [27][28] Global Strategy - The Chinese market serves as a testing ground for J&T Express's operational methodologies, which can be replicated globally [29][30] - The cost per package in China is $0.28, compared to $0.50 in Southeast Asia and $1.92 in new markets, indicating significant optimization potential in other regions [30][31]
极兔速递半年报：增长在海外，功夫在国内