Citi published a research report stating that jd.com logistics announced an investment of up to 6.484 billion yuan to acquire the remaining 36.43% stake in Kuaixun Express. The trade is subject to an adjustment mechanism linked to performance, with Kuaixun Express aiming to achieve profits of 2.15 billion and 2.35 billion yuan in the next two years. If profits meet expectations, the pe will reach 8.3 and 7.6 times.
Citi believes the trade valuation is reasonable, the acquisition has a positive impact on jd.com logistics, and anticipates good profitability for Kuaixun Express, which can also enhance jd.com logistics' profit margin and freight capacity. The 'buy' rating on jd.com logistics is maintained with a target price of 19 Hong Kong dollars, corresponding to a projected pe of 12 times for 2025.
