Bank of America Securities: Raising the target price of Jitu Express - W (01519) to HK$12.8, reaffirming it as the industry's preferred rating of “buy” in 2026

The Zhitong Finance App learned that Bank of America Securities released a research report saying that the fourth quarter performance of Jitu Express - W (01519) exceeded expectations, raised GeTu Express's non-IFRS profit forecast for the 2025 to 2027 fiscal year by 2 to 3%, and raised the target price slightly to HK$12.8, reaffirming that it is the industry's first choice for 2026, with a “buy” rating.

Goku Express recorded strong package volume growth in the fourth quarter of last year, particularly in Southeast Asia and new markets. According to the data, the average daily volume of packages in Southeast Asia reached 26.5 million, an increase of 73.6% over the previous year, and the number of packages in the new market increased 79.7% to 1.45 million per day, both exceeding expectations.

Bank of America pointed out in the report that the strong growth in the Southeast Asian market is due to the increase in e-commerce penetration rate and the company's continuous expansion of production capacity, including adding 1,000 new branches and 3 new automated sorting systems, which is expected to support the target of reducing unit costs by 5 to 10% per year. In terms of emerging markets, Brazil has become the main driver of growth. Although Mexican package volume is affected by tariffs, it has maintained positive growth. The transformation of localized logistics models and semi-managed e-commerce models are expected to benefit companies such as Jitu with a nationwide logistics network layout.

Despite the slowdown in overall growth in the Chinese market, Jitu Express maintained its profitability by focusing on high-value businesses and reverse logistics. Bank of America believes that core customers such as Temu, Shein, and TikTok continue to drive order growth, while growing demand from Mercado Libre (Mercado Libre) is also injecting new impetus into the new market. Looking ahead to 2026, Bank of America predicts package volume growth in Southeast Asia and the new markets by 43% and 49%, respectively.