Chinese courier firm ZTO Express Q3 revenue rises on strong retail volumes

Overview

• ZTO Q3 revenue increases 11.1% yr/yr to RMB11.9 bln

• Adjusted net income rises 5% to RMB2.5 bln

• Parcel volume grows 9.8% to 9.6 bln

Outlook

• Company revises 2025 parcel volume guidance to 38.2-38.7 bln, up 12.3%-13.8% YoY

• ZTO cites macro environment changes for adjusting parcel volume guidance

Result Drivers

• RETAIL VOLUME GROWTH - Strong retail volume momentum contributed positively to margins

• TRANSPORTATION COST PRODUCTIVITY - Improved load rate and economies of scale reduced unit transportation costs

• FOCUS ON QUALITY - ZTO emphasizes quality and market presence amid macro uncertainties

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the courier, postal, air freight & land-based logistics peer group is "buy"

• Wall Street's median 12-month price target for ZTO Express (Cayman) Inc is $23.10, about 17.9% above its November 19 closing price of $18.97

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nPn6kmtXPa

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