Yamato: Raises J&T EXPRESS-W (01519) target price to HK$12.5 with a "Buy" rating.

Yamato released a research report stating that it reiterated a "buy" rating for J&T EXPRESS-W (01519), with the target price raised from 11 Hong Kong dollars to 12.5 Hong Kong dollars to reflect the growth potential in Southeast Asia and new markets. After years of fierce competition in the Thai market, it is now trending towards integration. The management is optimistic about the future prospects of the Thai business and aims to increase market share. The report indicates that J&T Express management expects the growth potential of parcel volume in Thailand to be five times the current market size, and believes that the company can surpass the industry average growth rate in Thailand with several competitive advantages, including the highest density of delivery personnel coverage, equipment automation level, growth in non-e-commerce parcel volume, high consistency in employee benefits, and diversified global business layout.