Bank of America Securities: Raises target price of J&T EXPRESS-W (01519) to 12.2 Hong Kong dollars, reiterates "buy" rating.

Bank of America Securities issued a research report stating that considering strong second-quarter operating data, it reaffirmed a "buy" rating on J&T EXPRESS-W (01519). The bank said that parcel volumes in Southeast Asia increased by 63% year-on-year, in line with the bank's expectations but higher than investors' expectations of over 50% year-on-year growth. Parcel volumes in China increased by 11% year-on-year, exceeding the bank's forecast of 9% year-on-year growth. The biggest positive surprise came from other markets, with parcel volumes in other markets increasing by 136% year-on-year despite disruptions in the Middle East, surpassing the bank's forecast of 100% year-on-year growth. The bank raised its adjusted net profit forecast for the fiscal years 2027 to 2028 by 2% due to strong growth in new markets. The weakness of the Indonesian rupiah was largely offset by the strength of the Chinese yuan. The target price was raised by 5%, from HK$11.6 to HK$12.2.