CLSA: SF HOLDING and J&T EXPRESS-W Partnership Boosts Competitiveness; J&T EXPRESS-W Target Price Increased to $13.6, Named Top Pick in Sector
Cross-Subscription Announcement: SF Holding and J&T Express have announced a cross-subscription of newly issued shares valued at HKD8.299 billion, indicating strong collaboration and confidence from both management teams to enhance competitiveness.
Market Positioning: SF Holding's robust logistics infrastructure complements J&T Express's established last-mile delivery network, making it difficult for other domestic operators with overlapping resources to replicate their strategy.
Analyst Ratings: Citi has raised J&T Express's target price to HKD13.6 and increased profit forecasts for 2025-27, while trimming SF Holding's profit forecasts and reducing its A-share target price to RMB44.1.
Stock Performance: As of the latest data, SF Holding's stock decreased by 0.552%, while J&T Express's stock fell by 3.128%, with notable short selling activity reported for both companies.
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<Research>CLSA Projects Enhanced Debt Structure to Increase J&T EXPRESS-W's Profitability
Convertible Bonds Issuance: J&T EXPRESS-W plans to issue HKD4.65 billion in convertible bonds with a 7-year term and a yield to maturity of 0.375%, aimed at share repurchase, debt replacement, and market expansion in the EU and US.
Profitability Outlook: CLSA anticipates that the improved debt structure and lower interest rates will enhance J&T EXPRESS-W's profitability, while ongoing share repurchases are expected to increase earnings per share (EPS) for shareholders despite potential dilution.
CICC Reveals Significant H Share Holdings of CN Active Equity Funds in Q4 2025 (Table)
Mainland Chinese Mutual Funds' Holdings: CICC's report highlights the significant changes in Hong Kong stock holdings by Mainland Chinese mutual funds in 4Q25, with notable increases and decreases in various stocks.
Top Stocks with Increased Holdings: CNOOC and China Life saw increases in holdings, while Tencent, Alibaba, and SMIC experienced declines, reflecting varying investor confidence and market conditions.
Short Selling Trends: The report details short selling activities, indicating high ratios for several stocks, including Pop Mart and Kuaishou, suggesting bearish sentiment among investors.
Market Value Changes: The report outlines the market value changes for stocks, with significant losses for companies like Alibaba and Xiaomi, while others like Zijin Mining and YOFC showed gains, indicating a mixed market performance.
Citi Research: J&T EXPRESS-W Could Experience Price Volatility for ST Shr, Retains Buy Rating
Convertible Bond Issuance: J&T Express plans to issue a HKD4.65 billion zero-coupon convertible bond, which is considered reasonable due to its conversion premium and the company's growth potential in global markets.
Market Concerns: The stock may face short-term volatility due to hedging activities related to the convertible bond and investor worries about potential equity dilution from the issuance with SF Express.
Broker Rating: CICC maintains a Buy rating on J&T Express, highlighting its strong growth momentum in Southeast Asia and emerging markets.
Target Price: The broker has set a target price of HKD15 for J&T Express, reflecting confidence in the company's future performance despite current market fluctuations.
Daiwa: J&T EXPRESS-W's Convertible Bond Issuance Benefits Shareholders, Maintains Buy Recommendation
Research Report on J&T EXPRESS-W: Daiwa's report highlights J&T EXPRESS-W's plan to issue HKD4.65 billion in zero-coupon convertible bonds, with a conversion price set at HKD14.55 per Class B share, indicating a premium of about 30.85% over the recent closing price.
Shareholder Value and Concerns: The issuance of convertible bonds is seen as a way to create shareholder value through low-cost funding and ongoing share buybacks, although some investors may worry about future financing needs and potential profit-taking after a stock price rebound.
Market Growth Outlook: UBS notes that J&T Express has solid growth prospects in Southeast Asia and new markets, suggesting that any stock price corrections could present better buying opportunities.
Broker Rating: Daiwa has reiterated a Buy rating for J&T Express, indicating confidence in the company's medium-term growth despite potential market fluctuations.
J&T EXPRESS-W Issues HKD 4.65 Billion in Convertible Bonds
Bond Issuance Announcement: J&T EXPRESS-W announced a proposed issuance of zero-coupon guaranteed convertible bonds worth HKD4.65 billion, maturing in 2033, with an initial conversion price set at HKD14.55 per Class B share.
Use of Proceeds: The net proceeds of approximately HKD4.596 billion will be allocated for overseas business development, technology upgrades, capital structure optimization, and general corporate purposes.
UBS: Cross-Shareholding Synergies Between J&T EXPRESS and SF HOLDING Facilitate Enhanced Collaboration
Cross-Shareholding Agreement: J&T EXPRESS-W and SF HOLDING have entered a cross-shareholding agreement to subscribe to each other's newly issued shares, involving a total cash commitment of $8 billion for both parties without external financing.
Strategic Cooperation: The transaction aims to enhance business cooperation between the two companies, leveraging synergies to improve their logistics capabilities, particularly in Southeast Asia.
Market Influence: J&T EXPRESS-W holds a significant market share of over 30% in Southeast Asia by parcel volume, making it a strategic partner for SF HOLDING's expansion in the region.
Analyst Ratings: UBS has rated J&T EXPRESS-W's H-shares as Buy and SF HOLDING's A-shares as Neutral, reflecting positive expectations for their strategic collaboration and overseas business development.
<Research>CLSA Projects Enhanced Debt Structure to Increase J&T EXPRESS-W's Profitability
Convertible Bonds Issuance: J&T EXPRESS-W plans to issue HKD4.65 billion in convertible bonds with a 7-year term and a yield to maturity of 0.375%, aimed at share repurchase, debt replacement, and market expansion in the EU and US.
Profitability Outlook: CLSA anticipates that the improved debt structure and lower interest rates will enhance J&T EXPRESS-W's profitability, while ongoing share repurchases are expected to increase earnings per share (EPS) for shareholders despite potential dilution.
CICC Reveals Significant H Share Holdings of CN Active Equity Funds in Q4 2025 (Table)
Mainland Chinese Mutual Funds' Holdings: CICC's report highlights the significant changes in Hong Kong stock holdings by Mainland Chinese mutual funds in 4Q25, with notable increases and decreases in various stocks.
Top Stocks with Increased Holdings: CNOOC and China Life saw increases in holdings, while Tencent, Alibaba, and SMIC experienced declines, reflecting varying investor confidence and market conditions.
Short Selling Trends: The report details short selling activities, indicating high ratios for several stocks, including Pop Mart and Kuaishou, suggesting bearish sentiment among investors.
Market Value Changes: The report outlines the market value changes for stocks, with significant losses for companies like Alibaba and Xiaomi, while others like Zijin Mining and YOFC showed gains, indicating a mixed market performance.
Citi Research: J&T EXPRESS-W Could Experience Price Volatility for ST Shr, Retains Buy Rating
Convertible Bond Issuance: J&T Express plans to issue a HKD4.65 billion zero-coupon convertible bond, which is considered reasonable due to its conversion premium and the company's growth potential in global markets.
Market Concerns: The stock may face short-term volatility due to hedging activities related to the convertible bond and investor worries about potential equity dilution from the issuance with SF Express.
Broker Rating: CICC maintains a Buy rating on J&T Express, highlighting its strong growth momentum in Southeast Asia and emerging markets.
Target Price: The broker has set a target price of HKD15 for J&T Express, reflecting confidence in the company's future performance despite current market fluctuations.
Daiwa: J&T EXPRESS-W's Convertible Bond Issuance Benefits Shareholders, Maintains Buy Recommendation
Research Report on J&T EXPRESS-W: Daiwa's report highlights J&T EXPRESS-W's plan to issue HKD4.65 billion in zero-coupon convertible bonds, with a conversion price set at HKD14.55 per Class B share, indicating a premium of about 30.85% over the recent closing price.
Shareholder Value and Concerns: The issuance of convertible bonds is seen as a way to create shareholder value through low-cost funding and ongoing share buybacks, although some investors may worry about future financing needs and potential profit-taking after a stock price rebound.
Market Growth Outlook: UBS notes that J&T Express has solid growth prospects in Southeast Asia and new markets, suggesting that any stock price corrections could present better buying opportunities.
Broker Rating: Daiwa has reiterated a Buy rating for J&T Express, indicating confidence in the company's medium-term growth despite potential market fluctuations.
J&T EXPRESS-W Issues HKD 4.65 Billion in Convertible Bonds
Bond Issuance Announcement: J&T EXPRESS-W announced a proposed issuance of zero-coupon guaranteed convertible bonds worth HKD4.65 billion, maturing in 2033, with an initial conversion price set at HKD14.55 per Class B share.
Use of Proceeds: The net proceeds of approximately HKD4.596 billion will be allocated for overseas business development, technology upgrades, capital structure optimization, and general corporate purposes.
UBS: Cross-Shareholding Synergies Between J&T EXPRESS and SF HOLDING Facilitate Enhanced Collaboration
Cross-Shareholding Agreement: J&T EXPRESS-W and SF HOLDING have entered a cross-shareholding agreement to subscribe to each other's newly issued shares, involving a total cash commitment of $8 billion for both parties without external financing.
Strategic Cooperation: The transaction aims to enhance business cooperation between the two companies, leveraging synergies to improve their logistics capabilities, particularly in Southeast Asia.
Market Influence: J&T EXPRESS-W holds a significant market share of over 30% in Southeast Asia by parcel volume, making it a strategic partner for SF HOLDING's expansion in the region.
Analyst Ratings: UBS has rated J&T EXPRESS-W's H-shares as Buy and SF HOLDING's A-shares as Neutral, reflecting positive expectations for their strategic collaboration and overseas business development.
