JD Logistics (2618 HK) reported strong growth in external business in 2021, with revenue from external integrated supply chain customers increasing by 54.7% year-on-year to RMB25.5 billion. This was driven by both an increase in the number of customers (up 41.7% year-on-year) and an average revenue per customer (ARPC, up 9.2% year-on-year). The company is expected to maintain its strong growth in 2022 and turn profitable in 2023 as revenue ramps up and benefits of scale economies kick in. The target price of HKD34.5 is based on a premium over its peers, reflecting the company's expected faster revenue growth over the next few years.
