JD Logistics: 1Q26 in-line; buyback program a positive surprise

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JD Logistics: 1Q26 in-line; buyback program a positive surprise

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JD Logistics

1Q26 in-line; buyback program a positive

surprise

Reiterate Rating: BUY | PO: 16.60 HKD | Price: 14.98 HKD

Unexpected buyback to offset slower 2Q net profit growth 13 May 2026

JDL’s 1Q26 adjusted net profit reached RMB1.05bn, up 40% YoY and broadly in line with Equity

our estimate (see Exhibit 1 for 1Q26 results comparison). The key upside surprise was

Fan Tso, CFA >>

the announcement of an unexpected share repurchase program of US$1.2bn over 48 Research Analyst

months (shares to be cancelled), representing ~9% of its current market capitalization. In Merrill Lynch (Hong Kong) +852 3508 2875

addition, JDL plans to establish a trust to conduct on-market purchases to offset ESOP fan.tso@bofa.com

dilution. Management guided for largely flat YoY adjusted net profit in 2Q26, implying Karl Choi, CFA >>

~9% bottom line growth for 1H26, mainly due to weaker non-operating income YoY. Research Analyst Merrill Lynch (Hong Kong)

Nonetheless, we expect operating profit growth to remain robust at over 20% in 2Q26. +852 3508 3108

We reiterate our Buy rating, supported by an attractive valuation of 9.2x FY26E P/E. karl.choi@bofa.com

Revenue growth driven by multiple engines

JDL delivered a strong and well-rounded performance in 1Q26, with total revenue rising Stock Data

29% YoY to RMB60.6bn (high single-digit growth excluding instant delivery). Revenue

Price 14.98 HKD

from JD Group increased 32% YoY to RMB19.4bn, supported by the launch of Joybuy in

Price Objective 16.60 HKD

Europe. Revenue from integrated supply chain logistics serving external customers grew

Date Established 13-Apr-2026

16% YoY, driven by an 8% increase in customer numbers and a 7% rise in average

Investment Opinion C-1-9