J&T Express (1519.HK): Solid SEA Parcel Volume Growth, Accelerating Other Markets and Resilient China in 2Q26

研报英文原文证据摘录

J&T Express (1519.HK): Solid SEA Parcel Volume Growth, Accelerating Other Markets and Resilient China in 2Q26

J&T Express (1519.HK)

08 July 2026 Citi Research

Solid parcel volume growth in SEA – SEA recorded 63.2% yoy growth, which looks solid considering slightly tougher comps

and oil price surge during the quarter. The growth was mainly driven by 1) continuous rapid growth of the ecommerce industry

in SEA, 2) more aggressive investments by its major customers with promotional activities and free shipping, and 3) J&T’s

enhanced service quality and capabilities with strong growth on non-ecommerce parcels. Mgmt has seen limited impact on the

regional parcel volume performance from the oil price surge as fuel cost only represents a small portion of total costs and also

believes the impact toward costs is likely under control thanks to various measures to mitigate the impact.

Strong other markets performance – Other markets recorded 136.5% yoy parcel volume growth, which further accelerated vs.

1Q26’s 100.5% and exceeded our expectation, implying upside potential to its regional full-year guidance at 90% yoy . Mgmt

saw strong potential for the ecommerce market in LatAm given its lower online penetration and higher GDP per capita vs. SEA,

heavy investments from its customers, and J&T’s investments in capacity in the region with exporting its industry know-how

and technologies in China and SEA into the market. J&T has expanded into Columbia in 2Q26 and is penetrating other countries

in LatAm like Peru, and mgmt see the region with potential to become another SEA, while the expansion plan for US and Europe

is still under study given early budgeting stage and light upfront investments now.

Decent China market – China market recorded 10.6% yoy growth on parcel volume vs.