In today’s briefing:
- J&T Global Express Pre-IPO Tearsheet
- J&T Global Express IPO: The Bull Case
- Catching Up With CJ Logistics (000120 KS): With Shares Beaten Down, Management Forced to Refocus
J&T Global Express Pre-IPO Tearsheet
- J&T Global Express (1936374D CH) is looking to raise about US$1bn in its upcoming Hong Kong IPO.
- J&T Global Express (J&T) is a global logistics service provider.
- As per Frost & Sullivan (F&S), the firm is the leading express delivery business in Southeast Asia, with a 22.5% market share as per 2022 parcel volume.
J&T Global Express IPO: The Bull Case
- J&T Global Express (1936374D CH), a leading express delivery business in Southeast Asia and China has filed for a HKEx IPO to raise US$1 billion, according to press reports.
- J&T is the number one express delivery operator in Southeast Asia by parcel volume from 2020 to 2022, according to Frost & Sullivan.
- The key elements of the bull case rest on large addressable markets, market share gains, robust reported revenue growth and narrowing losses which set a path to profitability.
Catching Up With CJ Logistics (000120 KS): With Shares Beaten Down, Management Forced to Refocus
- Previously, we criticized CJ Logistics as unfocused, pursuing deals in low-margin segments around the world as if to fill a logistics ‘Bingo!’ card rather than in-line with a rational strategy
- In recent years, investors have punished the company’s shares, which have fallen by more than half since reaching a high of over 184,000 won per share in March 2021.
- However, with management de-emphasizing its Global segment and focusing instead on the more promising Parcel / E-commerce line of business, there is cause for optimism, in our view
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