Broker: UOB Kay Hian
Date of Report: 14 April 2026
Excerpt from UOB Kay Hian report.
Report Summary
- Stock: JD Logistics (2618 HK)
- Action: BUY (Maintained)
- Target Price: HK\$22.00 (Upside: 52.4% from current share price of HK\$14.44)
- Key Highlights:
- 1Q26 core after-tax profit expected to rise over 30% YoY, beating management guidance.
- Full-year 2026 core after-tax profit growth guidance maintained at 25-30%.
- Revenue growth for 1Q26 expected at 25% YoY, driven by organic growth and new F&B delivery business.
- Margins slightly improving; core after-tax margin at 1.7% in 1Q26.
- Fuel cost pressure viewed as manageable; 20% of fleet are new energy vehicles.
- Overseas revenue expected to grow faster than group-level revenue, though from a low base.
- Successful integration of Deppon Logistics expected to drive cost efficiencies and potential turnaround in 2H26.
- JD Logistics trades at attractive valuations (2026F PE: 9.5x/9.0x for 2026/27F, or less than 5x ex-net cash), cheaper than peers.
- Main risks: macro slowdown, tougher competition, overseas expansion execution.
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