1、J&T Express:Starting from SEA,expanding globallyANCHOR REPORTGlobal Markets Research25 October 2024The builder of a new e-Silk roadFounded in Southeast Asia(SEA)in 2015,J&T Express has expanded its footprint to China since 2020,and then into the Middle East,Latin America and Africa.J&T has now becom

2、e the largest independent logistics provider in SEA with a 27.4%share in 1H24 by parcel volume,serving ecommerce platforms like TikTok,Shopee and Lazada.While being a latecomer into the China market,its market share there had risen to 11%in 1H24,according to Frost&Sullivan(F&S).J&Ts strength in SEA

3、lies in its first-mover advantage,thus able to build a wide-ranging fulfillment network across the region to generate stronger economies of scale.J&Ts founder,coming from China,has accumulated significant expertise about SEA markets while overseeing the SEA business for a leading Chinese smartphone

4、brand OPPO(unlisted)before founding J&T.We believe the SEA market will likely remain the key parcel volume driver for J&T.Its China business will likely improve unit profit further backed by an optimized cost structure.We estimate J&T will clock an impressive 12%revenue CAGR over FY23-26F,with adjus

5、ted net margin improving to 4%in FY26F from-4.3%in FY23.We like J&T for its significant potential in the global markets while retaining its links in the China market,which enables it to make most of the growth opportunities available while having lower single-market risk.Thus,we initiate coverage of

6、 J&T with a Buy rating and a SOTP-based target price of HKD7.30.Research AnalystsChina Internet&New MediaRachel Guo-NIHK+852 2252 1400Jialong Shi-NIHKJ+852 2252 1409See Appendix A-1 for analyst certification,important disclosures and the status of non-US analysts.Production Complete:2024-10-27 22:22