J&T Global Express (1519) H1 2024 earnings summary

Executive summary

• Revenue rose 20.6% year-over-year to $4.86 billion in H1 2024, driven by strong parcel volume growth across all regions and improved profitability in China, Southeast Asia, and New Markets.

• Gross profit surged 176.8% to $535.7 million, with gross margin improving from 4.8% to 11.0%.

• Net profit reached $31 million, reversing a $666.8 million loss in the prior year; adjusted net profit was $63.2 million.

• Adjusted EBITDA increased 795.6% to $351 million, reflecting operational leverage and cost control.

• Market share increased in all core regions: SEA (27.4%), China (11.0%), and New Markets (6.1%).

Financial highlights

• Express delivery revenue grew 33.7% to $4.74 billion, accounting for 97.5% of total revenue.

• Cross-border services revenue dropped 88.4% to $51.9 million due to business restructuring.

• Operating profit was $115 million, compared to a $1.64 billion loss a year ago.

• Net cash inflow from operating activities was $346 million, up from $2.8 million.

• Basic and diluted EPS were $0.003 per share, compared to a loss per share of $-0.208 in H1 2023.

Outlook and guidance

• Plans to further increase market share, deepen e-commerce partnerships, and expand infrastructure in all regions.

• Focus on leveraging China experience in SEA and New Markets, with continued investment in network quality and operational efficiency.

• Will monitor and potentially enter new global markets opportunistically.

• Plans to refinance $1 billion borrowing, with refinancing expected to close within 2024.