According to a research report released by Nomura, Jitu Express (01519)'s package volume in the fourth quarter in China increased 27% year on year to 5.915 billion pieces, and the overall package volume in China increased 29% year on year in 2024, exceeding the Group's annual growth guideline of 20-25%. The target price is HK$7.3, and the rating is “buy”.
The bank said that in the fourth quarter of 2024, Jitu Express's package volume in China and Southeast Asia increased strongly, while the number of packages in new markets was weak. The Group's overall package volume in the fourth quarter increased 33% year-on-year to 7.392 billion units. Overall package volume increased 31% year over year in 2024. Jitu Express attributed the steady increase in package volume in the fourth quarter to the high prosperity of the Chinese express delivery market, the outstanding sales growth of Pinduoduo and Douyin, and the high growth of individual packages.
