Core Viewpoint - UBS reports that J&T Express (01519) and SF Express (002352) announced a cross-shareholding agreement, agreeing to subscribe to each other's newly issued shares, with a total cash amount of HKD 8 billion for each party without external financing [1] Group 1: Strategic Collaboration - The proposed transaction aims to deepen business cooperation between the two companies, with UBS believing there are synergies in their collaboration [1] - SF Express is focused on building end-to-end supply chain service capabilities to serve Chinese enterprises going overseas, with Southeast Asia as an initial key market [1] - Establishing a solid end logistics network overseas is seen as a crucial final piece, with J&T's strong influence in Southeast Asia (over 30% market share by parcel volume) potentially being the solution [1] Group 2: Market Opportunities - J&T Express intends to move up the logistics value chain to capture more opportunities from the non-e-commerce market, which currently accounts for about 10% of its total business volume in Southeast Asia [1] - SF Express's stable non-e-commerce customer base provides an opportunity for J&T Express [1] - UBS does not rule out further synergies in operations within China through shared capacity, and the collaboration may extend beyond Asia [1] Group 3: Global Expansion - J&T Express has rapidly developed its business in Latin America and the Middle East and is considering the possibility of exploring the European and American markets together with SF Express [1]