Understanding the Market | J&T EXPRESS-W rises over 5% again as Q3 Southeast Asia and new market business volume exceeds expectations

J&T EXPRESS-W rose over 5% again, as of the time of writing, up 4.42%, reported at HKD 10.64, with a transaction volume of HKD 211 million. In terms of news, J&T EXPRESS recently released its third-quarter operational data. Overall, it achieved a parcel volume of approximately 7.68 billion pieces, with an average daily parcel volume rising to 83.4 million pieces, a year-on-year increase of 23.1%. Among them, the Southeast Asian market's parcel volume reached 1.9968 billion pieces, a year-on-year surge of 78.7%; the Chinese market's parcel volume was 5.5758 billion pieces, a year-on-year increase of 10.4%; the new market's parcel volume in the third quarter was 104.2 million pieces, a year-on-year increase of 47.9%. Daiwa released a research report stating that the Southeast Asian express delivery market has entered a new development stage due to intensified platform competition and market share consolidation. Considering J&T's market positioning and competitive costs, it believes the company can gain an advantage in the new growth phase. In terms of the Chinese market, under the industry's push against involution, the average price improved quarter-on-quarter in the third quarter, but the industry's parcel volume growth slowed, which also raised unit costs during the period. Therefore, management maintains a neutral to slightly optimistic view on the full-year domestic business. Considering J&T's continuous optimization of its domestic customer structure, the bank maintains a cautious view on the impact of the anti-involution actions on profitability