UBS lowers JD LOGISTICS target price to 16.3 yuan, rating "Buy"

AASTOCKS
2025.11.17 08:59

UBS's research report pointed out that JD Logistics (02618.HK) third-quarter performance roughly met previous guidance, with total revenue growing strongly by 24%, but the net profit margin decreased by 2 percentage points year-on-year; the firm maintains a positive outlook on the company's revenue prospects but believes that the visibility of profit margins remains low.

Due to the uncertainty regarding profit margins, UBS has lowered its earnings per share forecast for JD Logistics for 2025 to 2027 by 2% to 9% and reduced the target price by 9%, from HKD 18 to HKD 16.3. Nevertheless, because JD Logistics has the potential to grow into a global company leveraging its technological advantages, the firm remains optimistic about the company, rating it as "Buy."

In this regard, the company has just announced plans to invest in 3 million logistics robots, 1 million unmanned trucks, and 100,000 drones over the next five years. UBS indicated that while these numbers seem quite ambitious, it indeed believes that such initiatives could bring upward potential for profit margins

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