In "The Big Banks," Citigroup: J&T's debt structure improvement is expected to enhance profitability

According to a report by Citigroup, J&T EXPRESS-W (01519.HK) plans to issue HKD 4.65 billion convertible bonds with a maturity of 7 years, and the yield to maturity upon conversion is 0.375%. The main purposes of the bond issuance include share repurchase, refinancing high-interest old debts, and expanding into new markets in the European Union and the United States. Management stated that given the company's ample cash reserves, there may not be further financing plans in 2026.

The bank believes that improvements in the debt structure and declining interest rates are expected to enhance the company's profitability, while ongoing share repurchases should further boost earnings per share. Even with potential dilution effects, all shareholders will still benefit; maintaining an "outperform" rating with a target price of HKD 13.6