J&T Global Express' (HKG:1519) board has approved an on-market share buyback plan of up to HK$1 billion, according to a Wednesday Hong Kong bourse filing.

Shares of the logistics firm were up over 2% in Thursday afternoon trade.

The plan will be executed under a general mandate, allowing repurchases of up to 889.7 million Class B shares, or 10% of issued shares.

Funding will come from existing cash reserves and free cash flow, the filing said.

The company said its shares are undervalued relative to its performance and intrinsic value, adding that the buyback will improve capital management and benefit shareholders.