NEWS WRAP: J&T Express sets ‘Double 11’ shipment milestone as share buyback launches

The logistics company handled more than 100 million parcels on a single day at the height of a shopping festival likened to Black Friday in the West

By Teri Yu

Global logistics provider J&T Global Express Ltd. (1519.HK) handled more than 100 million parcels on a single day during this year’s “Double 11” shopping festival, demonstrating its ability to handle such large volumes during an event that has come be known as China’s – and increasingly Asia’s – answer to Black Friday in the West.

This year’s festival, also known as Singles’ Day, ran for several weeks, starting Oct. 20 and lasting through Nov. 12. During that period, J&T said its average parcel volume rose 25% year-on-year to almost 66 million packages each day in China, its largest market. Average parcel volumes for other Southeast Asia markets where the company is active also exceeded 15 million per day as the festival gains global popularity.

“Exceeding 100 million global parcels in a single day during Double 11 sets a historic record,” said J&T vice president Charles Hou. “We will continue to invest in infrastructure and resource allocation across various markets to ensure efficient and reliable logistics services during peak seasons.”

The company said it upgraded and renovated its 32 sorting centers and over 600 distribution hubs to boost operational capacity in anticipation of the surge in China. It conducted similar preparations in other key markets like Vietnam and Thailand, such as expanding its sorting centers, deploying extra trucks and adding both automated equipment and staffing to ensure timely and effective handling of parcel shipments.

In the shopping festival’s early years, when it was concentrated into just a few days, logistics companies often found themselves overwhelmed with huge package volumes for very brief periods. To ease such bottlenecks, e-commerce companies have expanded the length of their promotions, and logistics providers like J&T also typically boost their capacity in advance.

J&T Express has been rapidly expanding its global coverage over the past few years beyond its original bases in Southeast Asia and China, with additional presences in Saudi Arabia, the UAE, Mexico, Brazil and Egypt.

The company reported a net profit of over $31 million in the first half of this year, reversing a loss of $670 million a year earlier. Revenue for the period rose 20.6% year-on-year to $4.86 billion as the company expanded globally.

Analysts have been broadly positive on the company, saying its strategic investments in infrastructure and human resources, advantageous position within China’s globalizing e-commerce chain, rapid growth in new markets and unique regional sponsorship model will support its further growth. Citi recently initiated coverage on J&T with a “buy” rating and target price of HK$8.30 per share.

The company also launched a share buyback plan in late October, saying it will repurchase up to 881 million of its shares, equal to 10% of its issued share capital, using its money from its cash reserves. The buyback signals the company’s confidence in its future growth and commitment to boosting its share price which the company believes is undervalued.

J&T Express began its operations in 2015 in Indonesia and has grown since then to become Southeast Asia’s leading express delivery company. It expanded into China in 2020 and now covers over 99% of China’s counties and districts. Its express delivery services now span 13 countries with expanding footprints in Latin America and the Middle East.

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