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Daiwa: JD LOGISTICS A Hidden Gem; TP Lifted to HKD20
2026-05-13 10:41:01
JD LOGISTICS (02618.HK) delivered strong profit growth in 1Q, launched its first-ever share repurchase program and actively adopted artificial intelligence, Daiwa said in its report, describing the stock as a hidden gem. The broker reiterated its Buy rating and raised its 12-month TP from HKD19.5 to HKD20.

The report noted that JD LOGISTICS' adjusted profit in 1Q grew 40% YoY to RMB1.052 billion, revenue added 29%, and gross margin and operating margin expanded by 0.8 ppts and 1.2 ppts to 8% and 1.6%, respectively. The board approved its first share repurchase plan, under which the company will deploy USD1.2 billion over the next 48 months to repurchase at least 10% of its shares.

Daiwa believed that although the chance of dividend distribution in 2026 is slim, the share repurchase will serve as a strong catalyst for the share price and is a positive move to enhance shareholder returns.
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AASTOCKS Financial News
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