Core Viewpoint - JD.com has taken a significant step in integrating its business after privatizing Dada Group by acquiring its local on-demand delivery business for $270 million, marking the completion of the privatization process [3][4]. Group 1: Acquisition Details - JD Logistics announced the acquisition of Dada Group's local on-demand delivery business through a business transfer agreement, acquiring 100% of two wholly-owned subsidiaries, Dajiang and Dasheng [3]. - The acquisition is part of JD's broader strategy to enhance its local life services, with Dajiang registered in China with a capital of $700 million and Dasheng newly established in Hong Kong [3][4]. Group 2: Financial Performance - Dada Group's revenue for 2024 is projected to be 9.66 billion yuan, down 8% from 10.5 billion yuan in 2023, with a net loss of 2.038 billion yuan, slightly widening from a loss of 1.957 billion yuan the previous year [4]. - Despite ongoing losses, Dada's established on-demand delivery network and operational experience provide a crucial foundation for JD's entry into the local life services market [4]. Group 3: Business Integration and Structure - Following the acquisition, JD's local life services division has been restructured into the "Local Life Services Group," which includes various departments such as instant delivery and home services, enhancing its service offerings [5]. - The division will continue to be led by the former head of Dada, Guo Qing, who has experience in optimizing delivery networks, which is expected to improve operational efficiency [5]. Group 4: Market Impact and Growth - JD's foray into the food delivery sector has shown promising results, with over 25 million daily orders during the June 618 shopping festival and more than 150,000 restaurants joining the platform [5]. - The integration of the delivery business is anticipated to create synergies that enhance JD's competitiveness in the instant retail sector, potentially lowering fulfillment costs and improving delivery efficiency [6]. Group 5: Stock Performance - As of the latest report, JD Logistics' stock price is 13.01 HKD, reflecting a 3.67% increase, with a market capitalization of 86.582 billion HKD [7].

Core Viewpoint - The report from CMB International raises the target price for SF Express (09699) to HKD 15.4, maintaining a "Buy" rating, indicating that the company is expected to benefit from a rationalization of delivery subsidies and has significant business growth potential in the future [1] Group 1: Financial Projections - CMB International has adjusted the revenue forecasts for SF Express for 2025-2027, projecting a growth of 14%/12%/12%, leading to revenues of RMB 22-30.4 billion, with annual increases of 40%/20%/15% [1] - Profit forecasts for 2025-2027 have been raised by 26%/23%/27%, resulting in projected profits of RMB 340-760 million, with Non-IFRS net profit margins of 1.5%/2%/2.6% [1] Group 2: Business Dynamics - The company is seen as a beneficiary of the ongoing delivery subsidy competition, with expectations that the rationalization of subsidies will enhance its business environment [1] - The collaboration with SF Express is expected to deepen, and the scaling of autonomous vehicle delivery is anticipated to continuously reduce costs [1] Group 3: Operational Efficiency - The company is experiencing a significant improvement in operational efficiency due to increased order density and effective management of quality riders, supported by AI technology [1]

Group 1 - The core viewpoint of the report is that the target price for SF Express (09699) has been raised to HKD 15.4, maintaining a "Buy" rating due to its position as a beneficiary in the delivery subsidy war [1] - The report highlights that as subsidies return to rationality, there remains significant business potential for SF Express, supported by deepening business synergies with SF Holdings and the ongoing cost reduction from the scaling of autonomous vehicle deliveries [1] - Based on a significantly better-than-expected revenue growth in the first half of the year, the demand for instant delivery services is expected to accelerate in the third quarter [1] Group 2 - Revenue forecasts for SF Express have been adjusted for 2025-2027, with expected growth rates of 14%/12%/12%, leading to revenues of RMB 22-30.4 billion, representing annual increases of 40%/20%/15% [1] - Profit forecasts for the same period have been raised by 26%/23%/27%, resulting in projected profits of RMB 340 million to 760 million, with Non-IFRS net profit margins of 1.5%/2%/2.6% [1] - The improvements in operational efficiency are attributed to increased order density, effective management of quality riders, and continuous optimization of operating costs aided by AI [1]