JD.com's logistics unit falls after deal to buy Deppon Logistics

JD Logistics

14/03/2022 03:18

** Shares of JD Logistics Inc  2618.HK  fall as much as 4.8%
to HK$18.08, on course for a ninth consecutive session of
decline
    ** Chinese e-commerce giant JD.com Inc  9618.HK  on Sunday
said that its subsidiary JD Logistics has agreed to buy domestic
courier Deppon Logistics Co Ltd  603056.SS   urn:newsml:reuters.com:*:nL2N2VG07B
    ** JD Logistics (JDL) will buy 66.50% of Deppon Logistics
for about 9 bln yuan ($1.42 bln), and will then make an offer
for all the issued shares of Deppon Logistics 
    ** Stock of Deppon Logistics soar 10% in Shanghai
    ** "We are positive on the deal and see clear synergies and
decent potential for efficiency improvement for Deppon including
optimization of labor, structure and technology with assistance
from JDL," Citi wrote in a note. It maintains "buy" on JDL 
    ** However, Hong Kong shares of JD.com drop as much as 13.7%
to HK$182.30, a fresh low since listing in the city in June 2020
    ** Daiwa trims JD.com's TP to HK$385 from HK$425 after the
on-line retailer reported its weakest revenue growth in six
quarters amid slowing consumer spending
    ** Hang Seng sub-index tracking information technology firms
 .HSCIIT  drops 6.8%, Hang Seng Tech Index  .HSTECH  plunges
7.7%, and the benchmark Hang Seng Index  .HSI  falls 3.5% 
    

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))