J&T Global Express Limited (HKEX: 01519) reported a sharp acceleration in profitability for the first half of 2026, with adjusted net profit more than doubling to US$350.6 million, up 124.3% year-on-year. The Hong Kong-listed logistics provider also saw revenue climb 39.5% to US$7.67 billion, driven by robust parcel volume growth and operational efficiency gains across its global network.

The company’s total parcel volume reached 17.50 billion in 1H2026, marking a 25.1% increase from the same period last year. Notably, global average daily parcel volume exceeded 100 million for the first time during the second quarter, signaling a new scale threshold for the firm. This volume expansion was accompanied by significant margin improvement, as adjusted EBIT rose 121.7% to US$433.6 million.

Regional Performance Drivers

Southeast Asia emerged as the primary growth engine, with parcel volume surging 71.2% to 5.52 billion. J&T maintained its position as the market leader in the region by volume for the sixth consecutive year. The company expanded its infrastructure footprint, operating 127 sorting centers and increasing automated sorting lines to 75 as of June 30, 2026.

In China, the company focused on high-quality development amid industry consolidation. Parcel volume grew 9.6% to 11.615 billion, helping J&T increase its market share to 11.6%, up 0.5 percentage points year-on-year. The firm deployed over 1,900 unmanned delivery vehicles in China, an 87% increase from the end of 2025, to enhance last-mile efficiency.

Other markets, including Latin America and the Middle East, recorded rapid expansion with parcel volume jumping 119.9% to 365 million. Market share in these regions rose from 6.2% to 8.9%, supported by partnerships with major e-commerce platforms such as TikTok, SHEIN, and Mercado Libre.

What the Numbers Show

The divergence between revenue growth and profit growth highlights significant operating leverage. While revenue increased by 39.5%, adjusted net profit grew by 124.3%. This acceleration was underpinned by a 77% year-on-year rise in adjusted EBIT per parcel, which reached US$0.025. The data indicates that cost control measures and economies of scale are outpacing volume-driven cost increases, allowing the company to capture higher margins on each unit delivered.

Financial Position and Shareholder Returns

Operating cash flow strengthened to US$635.5 million, up 50.9% year-on-year. As of June 30, 2026, the company held ample liquidity with cash and cash equivalents, restricted cash, and bank wealth management products totaling US$2.91 billion.

J&T continued its capital return strategy, repurchasing 99.318 million shares in the first half of the year. On June 25, the company announced an increase in its share repurchase plan size to HK$2.0 billion. Additionally, J&T was included as a constituent stock of the Hang Seng Index in June 2026, becoming a Hong Kong blue-chip company.

Global logistics service provider J&T Express delivered 213 million parcels during the 'Double 6' mid-year shopping festival, representing an 83.5% year-over-year surge. The company achieved record volumes in core markets including Indonesia, Thailand, Malaysia, Vietnam, and the Philippines. Average daily parcel volume in Southeast Asia reached 35.51 million, with a single-day peak exceeding 37 million on June 2.

Operational Performance by Market

J&T Express reported significant growth across its key markets, driven by deep line-haul and last-mile network coverage. The following table details the year-over-year parcel volume growth for specific regions:

The company swiftly responded to the region-wide surge in parcel volume, ensuring stable and efficient network operations throughout the promotional period.

Infrastructure and Capacity Expansion

To manage the increased demand, J&T Express proactively advanced infrastructure upgrades and transport capacity reserves. The company constructed and upgraded core sorting facilities in Thailand and the Philippines while deploying automated and specialized sorting equipment across multiple countries. This intelligent equipment synergy significantly improved overall network operational efficiency.

Transport and human resource strategies included:

• Thailand: Purchased and deployed multiple line-haul and branch-line vehicles.
• Philippines: Planned for an approximate 30% increase in human resources.
• Vietnam: Established a three-tier flexible support team to handle an additional daily capacity of approximately 120,000 parcels.

Technology and Localized Operations

J&T Indonesia introduced an AI-based digital system to monitor parcel flows in real time, coordinating with frontline teams to address unexpected situations such as extreme weather. J&T Vietnam extended door-to-door pickup times by two hours for key merchants to improve shipping rates. In Thailand, J&T Express launched a 'Joint Advertising' initiative across 38 MRT stations and 1,200 electronic screens to boost merchant exposure. Additionally, cooling facilities and free beverages were provided to frontline staff at major sorting centers.