HK Stock Market Move | J&T EXPRESS-W(01519) increased by over 4% again, cumulative increase of over 60% within the month, parcel volume in the second quarter exceeded market expectations.

J&T EXPRESS-W (01519) surged by over 4% again, with a total increase of over 60% within the month. As of report, it increased by 4.8% to 10.92 Hong Kong dollars, with a trading volume of 5.72 billion Hong Kong dollars. On the news front, the State Post Bureau recently clearly stated its opposition to "internal competition" and is pushing for the industry to return to rational development. Since July, regulatory authorities have increased efforts to regulate, emphasizing industry self-discipline and guiding companies to shift from price wars to competition based on service and efficiency. Dongxing pointed out that the current strategy of "exchanging price for quantity" has diminishing marginal effects, and continued price reductions have limited impact on incremental demand, instead directly eroding profits for headquarters and franchisees. Policy interventions are expected to alleviate vicious competition. Bank of America Securities released a research report stating that J&T Express's second-quarter operating data exceeded expectations, driven by rapid growth in the Southeast Asian and Latin American e-commerce markets. The total volume of packages in the second quarter was 73.92 billion pieces, a year-on-year increase of 23.5%. Correspondingly, the EBITDA forecast for Southeast Asian business for the full year was raised by 9%, and the adjusted net profit forecast for 2025 to 2027 was raised by 9% to 30%. The target price was raised from 7.7 Hong Kong dollars to 9.1 Hong Kong dollars, with a reaffirmed "buy" rating. Morgan Stanley previously released a research report stating that TikTok Shop, which uses third-party logistics this year, is actively seizing market share, leading to better-than-expected second-quarter performance for J&T Express. The bank predicts that J&T Express's adjusted net profit in the first half of the year will reach approximately $235 million, compared to $63 million in the same period last year.