J&T Express - H: 2Q26 update: Macro volatility no barrier to scale, quality, and accelerating global growth

Research evidence excerpt

J&T Express - H: 2Q26 update: Macro volatility no barrier to scale, quality, and accelerating global growth

he J.P. Morgan Securities Singapore Private

volume and margin trends, despite ongoing macro and sector volatility. Limited

Mufan Shi

Stock view: The share price is up c.14% over the past week (vs HSI up (852) 2800-8502

c6%) in anticipation of the strong quarterly print (with the date for today’s mufan.shi@jpmorgan.com

operational update first released on 1 July), so today’s muted response post J.P.J.P. MorganMorgan SecuritiesBroking (Hong(AsiaKong)Pacific)LimitedLimited/

our initiation is not a surprise – especially given the day’s AI-driven Neil Zhang

rotations into HK’s index-heavy names such as Alibaba amid fund (852) 2800-8598

rebalancing. YTD, the stock remains down 9% but is modestly ahead of neil.zhang@jpmorgan.com

HSCI (down 12%) on a relative basis. We stay fundamentally bullish: J.P. Morgan Securities (Asia Pacific) Limited/

J.P. Morgan Broking (Hong Kong) Limited

today’s datapoints and briefing takeaways reinforce the re-rating case,

Beatrice Lam

with scale, cost/automation proof, and capital return all tracking ahead of (852) 2800-8738

plan. The next catalyst is whether these operating trends translate into beatrice.lam@jpmorgan.com

earnings upgrades at the interim results, in our view. Maintain OW. J.P. Morgan Securities (Asia Pacific) Limited/

• A new volume milestone and mix shift outside China are

strengthening the case for sustainable scale and margin leverage.

J&T’s 2Q26 group parcels reached 9.18B (+24.2% Y/Y), with daily

average volume exceeding 100MM for the first time. This level of

throughput is critical for driving sustained unit-cost deflation and service

reliability, as it maximizes network utilization and accelerates

automation payback.