Core Viewpoint - Bank of America Securities reports that JD Logistics (02618) exceeded expectations in Q4 last year, driven by a decrease in operating expenses, and maintains a "Buy" rating with a target price of HKD 15 [1][3] Financial Performance - JD Logistics reported a non-IFRS net profit of RMB 2.35 billion in Q4, a year-on-year increase of 6%, which is 4% higher than the bank's forecast [1][3] - Revenue and gross profit grew by 22% and 17% year-on-year, respectively, aligning with expectations [1][3] - Revenue from JD Group increased by 68% year-on-year, benefiting from the consolidation of food delivery and instant logistics businesses [1][3] - Revenue from external supply chain logistics grew by 3%, but customer growth was offset by a 6% decline in average revenue per customer [1][3] Future Outlook - Management is optimistic about the fiscal year 2026 outlook, guiding for revenue growth of 20% to 25% and non-IFRS net profit growth of 25% to 30% [1][3] - If these targets are met, it implies a potential upside of 15% to 20% in current profit forecasts, exceeding the most optimistic investor assumptions by approximately 10% to 15%, with a projected P/E ratio of less than 7 for FY 2026 [1][3] Cost Management - Selling and marketing, research and development, and general administrative expenses were 8% to 13% lower than the bank's predictions [1][3]