Xiaomo expects the revenue of JD Logistics-SW (02618) to increase 10% year-on-year to RMB 40.4 billion in the first quarter.
The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that it “increased” the rating to JD Logistics-SW (02618), with a target price of HK$17. Efforts to improve operational efficiency will continue to support its profit margin expansion. The bank expects the company's revenue to increase 10% year-on-year to RMB 40.4 billion in the first quarter, in line with institutional forecasts.
The bank expects that, benefiting from cooperation with Temu in cross-border logistics and domestic transportation, the company's freight business will achieve double-digit growth in the first quarter of 2024. Thanks to the integration with the Debon network and the company's continued cost cuts, Motong expects the company to achieve break-even in the first quarter. Considering seasonal factors, this will be the best profit in the first quarter. It is also expected that the integration of Debon's network will drive profit margin expansion this year.