The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that it slightly raised Kerry Logistics (00636)'s profit forecast for the 2024 fiscal year by 2% and maintained a target price of HK$11. It believes the Group is best able to benefit from the current cycle of rising air and sea freight rates and maintain an “gain” rating. Management has a positive view of this year's air and sea freight rate trends. The growth of cross-border e-commerce will strongly support air freight prices. Amid the ongoing Red Sea crisis and the uncertainty brought about by the July/August East Coast trade union negotiations, the upward cycle of sea freight rates is likely to continue.
According to the report, the Group's long-term strategy is to expand its network coverage in Illinois, strengthen its position on transatlantic trade routes through mergers and acquisitions, enhance pricing capabilities, and accumulate expertise in key vertical fields. The Group's long-term goal is to become one of the top five global freight forwarders. The management guided net profit to reach high single-digit growth, but based on the magnitude of the current rate increase cycle, the bank believes that the increase is too conservative.