Core Viewpoint - The report from Guojin Securities indicates that Jitu Express-W (01519) is expected to see significant revenue and profit growth in the first half of 2025, driven by improvements in operational efficiency and market conditions in China and Southeast Asia [1] Financial Performance - In H1 2025, Jitu Express is projected to generate revenue of $5.499 billion, representing a year-on-year increase of 13.1% [1] - The net profit attributable to the parent company is expected to be $86 million, showing a substantial year-on-year growth of 213% [1] - The revenue contribution from the China region is the highest at 57%, while the Southeast Asia region contributes the most to profits, with an adjusted EBIT contribution of 120% [1] Future Projections - The company’s net profit forecasts for 2025, 2026, and 2027 are $305 million, $525 million, and $825 million, respectively [1] - A target price of HKD 11.37 is set for 2026, based on a 25x PE ratio, with an initial "buy" rating assigned [1] Market Dynamics - The report highlights a stabilization in the average order price in China due to the "anti-involution" trend, which is expected to positively impact revenue [1] - In H1 2025, revenue from the China region is anticipated to be $3.137 billion, with a year-on-year growth of 4.6% and a package volume of 10.6 billion pieces, reflecting a 20.0% increase [1] - The industry is expected to see a narrowing of price declines due to initiatives in regions like Guangdong promoting the "anti-involution" approach [1] Operational Improvements - The company is investing in building its own transfer centers, trunk vehicles, and automation equipment, which is helping to reduce the cost gap with competitors in the "Tongda system" to approximately 0.1 yuan [1] - It is projected that this cost gap will further decrease by 0.1 yuan in 2025, contributing to improved profitability [1]