Investment Rating - The investment rating for ZTO Express is "Buy" [1] Core Views - ZTO Express reported a package volume of 8.723 billion in Q3 2024, representing a year-on-year growth of 15.9% [1] - The adjusted net profit for Q3 2024 was 2.387 billion, showing a year-on-year increase of 2.0% [1] - The company aims to maintain high-quality service and customer satisfaction while regaining market share and expanding its leading position in package volume [1] Summary by Relevant Sections Package Volume - In Q3 2024, ZTO Express achieved a package volume of 8.723 billion, with a year-on-year growth of 15.9% [1] - The company expects to guide its total package volume to 33.7 billion for the year, reflecting a year-on-year increase of 11.6% [1] Pricing and Revenue - The core revenue per package (excluding freight forwarding) was 1.20 yuan, with a year-on-year increase of 1.83% [1] - The single-package core cost decreased by 0.06 yuan year-on-year, benefiting from economies of scale and operational efficiencies [1] Profitability - The adjusted net profit per package was 0.28 yuan, showing a year-on-year decline, primarily due to a tax refund received in Q3 2023 [1] - The company maintained a healthy operating cash flow per package at 0.36 yuan, despite a year-on-year decrease of 8.7% [1] Financial Forecasts - The projected net profit for the years 2024 to 2026 is expected to be 10.204 billion, 10.971 billion, and 12.521 billion respectively, with year-on-year growth rates of 16.63%, 7.52%, and 14.13% [2] - The expected revenue for 2024 is 43.179 billion, with a year-on-year growth rate of 12.39% [2] Market Outlook - The express delivery industry continues to have growth potential, with ZTO Express expected to steadily increase its market share [1] - The expansion of e-commerce and the rise of live-streaming commerce are anticipated to drive further growth in package volumes [1]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 183.64 HKD for the Hong Kong stock and 23.59 USD for the US stock, based on a 15x PE valuation for 2024 [6][4]. Core Insights - The company reported a revenue of 31.36 billion RMB for the first three quarters of 2024, representing a year-over-year increase of 12.8%. The net profit attributable to shareholders was 6.43 billion RMB, down 1.9% year-over-year, while the adjusted net profit increased by 9.2% to 7.42 billion RMB [2][3]. - In Q3 2024, the company achieved a revenue of 10.68 billion RMB, up 17.6% year-over-year, with a net profit of 2.40 billion RMB, reflecting a 2.2% increase year-over-year [2][3]. - The total business volume for the first three quarters reached 24.346 billion packages, a 13.3% increase year-over-year, with Q3 alone accounting for 8.723 billion packages, up 16.0% year-over-year [2][3]. Financial Performance Summary - The company's gross profit maintained a robust growth of 23.2% year-over-year in Q3, driven by improved service quality and customer satisfaction. The core revenue per package increased by 1.8%, despite a decline of 11.8% in industry average package prices [3]. - The company has optimized its business structure, leading to improved revenue and operating profit margins. However, the ongoing trend of smaller package sizes poses challenges to balancing service quality, volume, and overall profitability [3]. - The company plans to rebalance resource allocation and pricing strategies to regain business volume growth and enhance market share [3]. Earnings Forecast - The expected EPS for 2024, 2025, and 2026 are 11.31 RMB, 13.06 RMB, and 14.66 RMB respectively, with projected revenue growth rates of 12%, 14%, and 10% for the same years [4][5].

Investment Rating - The report maintains a "Buy" rating for ZTO Express (02057.HK) [1] Core Views - ZTO Express reported a revenue of 31.36 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 12.8%. The net profit for the same period was 6.44 billion yuan, a slight decline of 1.6% year-on-year. In Q3 2024, the company achieved a revenue of 10.68 billion yuan, with a year-on-year growth of 17.6%, and a net profit of 2.38 billion yuan, up 1.3% year-on-year [1] - The customer structure continues to optimize, leading to an increase in revenue per package. In Q3 2024, the revenue per package was 1.20 yuan, a year-on-year increase of 1.8%, driven by an increase in direct customer revenue [1] - The company has adjusted its full-year package volume growth forecast to between 11.6% and 12.3%, corresponding to 33.7 billion to 33.9 billion packages, due to current market conditions [1] Summary by Sections Performance Overview - For Q1-Q3 2024, ZTO Express achieved a revenue of 31.36 billion yuan, a 12.8% increase year-on-year, and a net profit of 6.44 billion yuan, down 1.6% year-on-year. Q3 2024 revenue was 10.68 billion yuan, up 17.6% year-on-year, with a net profit of 2.38 billion yuan, up 1.3% year-on-year [1] Operational Analysis - The company saw a 15.9% year-on-year increase in business volume in Q3 2024, reaching 8.72 billion packages. The market share decreased by 0.7 percentage points to 20% year-on-year but increased by 0.4 percentage points quarter-on-quarter [1] - The cost per package remained stable at 0.82 yuan, with transportation costs decreasing to 0.39 yuan and transfer costs to 0.25 yuan, contributing to a gross margin increase of 1.4 percentage points to 31.2% [1] Profit Forecast and Valuation - The net profit forecasts for 2024-2026 have been revised down to 9.5 billion yuan, 11.5 billion yuan, and 13.1 billion yuan, respectively, from previous estimates of 10.5 billion yuan, 12.1 billion yuan, and 13.6 billion yuan. The "Buy" rating is maintained despite these adjustments [1]

Investment Rating - The report maintains a "Buy" rating for ZTO Express (02057.HK) [1] Core Views - ZTO Express reported a revenue of 31.36 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 12.8%, while net profit decreased by 1.6% to 6.44 billion yuan. In Q3 2024, revenue reached 10.68 billion yuan, up 17.6% year-on-year, with net profit of 2.38 billion yuan, a 1.3% increase [1] - The company continues to optimize its customer structure, leading to an increase in average revenue per package. In Q3 2024, the average revenue per package was 1.20 yuan, up 1.8% year-on-year, driven by a higher proportion of direct customer revenue [1] - The company has adjusted its full-year package volume growth forecast to between 11.6% and 12.3%, corresponding to 33.7 billion to 33.9 billion packages, due to current market conditions [1] Summary by Sections Performance Overview - For Q1-Q3 2024, ZTO Express achieved a revenue of 31.36 billion yuan, a 12.8% increase year-on-year, and a net profit of 6.44 billion yuan, down 1.6%. Q3 alone saw revenue of 10.68 billion yuan, up 17.6%, and net profit of 2.38 billion yuan, up 1.3% [1] Operational Analysis - The company’s package volume reached 8.72 billion in Q3 2024, a 15.9% year-on-year increase, although market share slightly declined by 0.7 percentage points to 20% [1] - The cost per package remained stable at 0.82 yuan, with transportation costs decreasing to 0.39 yuan and transfer costs to 0.25 yuan, contributing to a gross margin increase of 1.4 percentage points to 31.2% [1] Profit Forecast and Valuation - The net profit forecasts for 2024-2026 have been revised down to 9.5 billion yuan, 11.5 billion yuan, and 13.1 billion yuan respectively, from previous estimates of 10.5 billion yuan, 12.1 billion yuan, and 13.6 billion yuan [1]

Financial Performance - Adjusted net profit increased by 2.0% to RMB 2,387.3 million, compared to RMB 2,340.7 million in the same period last year[9] - Revenue reached RMB 10,675.0 million (USD 1,521.2 million), a 17.6% increase from RMB 9,075.9 million in the same quarter of 2023[10] - Gross profit rose by 23.2% to RMB 3,334.8 million (USD 475.2 million), compared to RMB 2,706.4 million in the previous year[10] - Adjusted EBITDA increased by 8.7% to RMB 3,739.5 million (USD 532.9 million), compared to RMB 3,438.6 million in the same period last year[10] - Basic and diluted earnings per American Depositary Share (ADS) were RMB 2.98 (USD 0.42) and RMB 2.90 (USD 0.41), reflecting increases of 2.4% and 2.1% respectively[10] - Operating profit was RMB 2,841.8 million (USD 405.0 million), a 17.3% increase from RMB 2,423.6 million in the same period last year, with an operating profit margin slightly decreasing from 26.7% to 26.6%[23] - Net profit was RMB 2,379.0 million (USD 339.0 million), a 1.3% increase from RMB 2,349.6 million year-over-year, with diluted earnings per ADS of RMB 2.98 (USD 0.42) compared to RMB 2.91 in the same period last year[26] - Adjusted net profit was RMB 2,387.3 million (USD 340.2 million), up from RMB 2,340.7 million in the same period last year[27] Operational Metrics - Package volume grew by 15.9% to 8.723 billion parcels, up from 7.523 billion parcels year-over-year[12] - In Q3 2024, the company achieved a total package volume of 8.72 billion and an adjusted net profit of RMB 2.39 billion, reflecting a strong operational performance[15] - The core express service revenue grew by 18.1% year-over-year, driven by a 15.9% increase in package volume and a 1.8% rise in unit price[17] - Operating cash flow amounted to RMB 3,112.0 million (USD 443.5 million), up from RMB 2,938.1 million in the same quarter of 2023[11] - Operating cash flow for the quarter was RMB 3.1 billion, while capital expenditures amounted to RMB 1.8 billion[15] - The number of automated sorting equipment in operation increased to 535 units as of September 30, 2024, up from 482 units a year earlier, contributing to operational efficiency[19] Cost and Expenses - Operating costs increased by 15.2% year-over-year to RMB 7.34 billion (USD 1.05 billion), with the main cost drivers being line haul transportation and sorting center operations[18] - The company reported a 4.7% increase in line haul transportation costs to RMB 3.40 billion (USD 484.2 million), with a 9.7% reduction in unit transportation costs[19] - Total operating expenses were RMB 493.0 million (USD 70.3 million), up from RMB 282.8 million year-over-year, with selling, general and administrative expenses increasing by 25.6% to RMB 544.6 million (USD 77.6 million)[23] - Material sales cost was RMB 161.6 million (USD 23.0 million), an increase of 38.1% compared to RMB 117.0 million in the same period last year[20] Strategic Initiatives - The company plans to adjust its resource allocation and pricing strategies to regain growth momentum and expand its market share amid economic challenges[15] - The company is focusing on maintaining high service quality and customer satisfaction while regaining market share[15] - ZTO Express is focusing on enhancing its technology and operational efficiency to support future growth and market expansion[40] - ZTO Express is actively exploring potential mergers and acquisitions to strengthen its market position and expand its service offerings[40] Future Outlook - The company revised its annual guidance, expecting package volume for 2024 to be between 33.7 billion and 33.9 billion, representing a year-over-year growth of 11.6% to 12.3%[32] - The company expects continued growth in revenue driven by the expansion of its logistics network and increased demand in the e-commerce sector[43] Financial Position - As of December 31, 2023, total assets amounted to RMB 88,465,221, a decrease from RMB 93,320,033 as of September 30, 2024, representing a decline of approximately 5.5%[47] - Total current liabilities reached RMB 20,061,184 as of December 31, 2023, down from RMB 31,282,790, reflecting a significant reduction of approximately 36%[47] - The company’s total liabilities were RMB 28,184,813 as of December 31, 2023, compared to RMB 32,197,962, indicating a decrease of around 12.5%[47] - The company’s total equity stood at RMB 60,280,408 as of December 31, 2023, a slight decrease from RMB 61,122,071, reflecting a decline of about 1.4%[47] - Cash and cash equivalents, including restricted cash, increased to RMB 11,747,744 by September 30, 2024, up from RMB 10,108,507 as of September 30, 2023, marking a growth of approximately 16.2%[51] Earnings Projections - The net profit for 2023 was RMB 2,349,610, with a slight increase projected to RMB 2,379,042 for 2024, translating to USD 339,010 and USD 339,010 respectively[53] - Adjusted net profit for 2023 was RMB 2,340,744, expected to rise to RMB 2,387,251 in 2024, equivalent to USD 340,180[53] - Earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2023 was RMB 3,449,483, projected to increase to RMB 3,731,315 in 2024, which is USD 531,707[53] - The basic earnings per share (EPS) for 2023 was RMB 2.91, with a forecasted increase to RMB 2.98 for 2024, translating to USD 0.42[55] - The diluted EPS for 2023 was RMB 2.84, expected to rise to RMB 2.90 in 2024, equivalent to USD 0.41[55]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 18,723,563, an increase of 10.5% compared to RMB 20,685,970 for the same period in 2024[11] - Operating costs increased by 9.1% from RMB 12,895,730 to RMB 14,063,408 during the same period[11] - Gross profit rose by 13.6% from RMB 5,827,833 to RMB 6,622,562[11] - Net profit decreased by 3.2% from RMB 4,195,034 to RMB 4,061,744[11] - Adjusted EBITDA increased by 4.0% from RMB 6,761,106 to RMB 7,034,205[11] - Adjusted net profit grew by 13.0% from RMB 4,450,774 to RMB 5,029,768[11] - Basic earnings per American Depositary Share (ADS) increased by 12.5% from RMB 5.52 to RMB 6.21[11] - Diluted earnings per ADS rose by 12.2% from RMB 5.40 to RMB 6.06[11] - Net profit for the six months ended June 30, 2024, was RMB 4,061,744, a decrease of 3.2% from RMB 4,195,034 for the same period in 2023[14] - Adjusted net profit increased to RMB 5,029,768 for the six months ended June 30, 2024, representing a growth of 13% compared to RMB 4,450,774 in the previous year[14] - Total revenue for the six months ended June 30, 2024, reached RMB 20,685,970, an increase from RMB 18,723,563 for the same period in 2023, representing a growth of approximately 10.4%[90] - Gross profit for the six months ended June 30, 2024, was RMB 6,622,562, compared to RMB 5,827,833 for the same period in 2023, indicating a gross margin improvement[90] - Operating profit for the six months ended June 30, 2024, was RMB 5,481,898, up from RMB 4,829,217 in the same period of 2023, reflecting a year-over-year increase of about 13.5%[90] - The net profit attributable to ZTO Express (Cayman) Inc. for the six months ended June 30, 2024, was RMB 4,037,848, compared to RMB 4,211,540 for the same period in 2023, showing a slight decrease of approximately 4.1%[90] Operational Efficiency - The company aims to enhance operational efficiency and expand market presence through strategic initiatives[13] - Future outlook includes continued investment in technology and potential market expansion opportunities[13] - The company processed over 31,000 collection and delivery points and more than 110,000 terminal stations across China as of June 30, 2024[19] - The logistics infrastructure includes 96 sorting centers and 515 automated sorting lines, supported by approximately 10,000 self-operated trunk trucks[20] - Investment in sorting centers and trunk transportation fleet is ongoing to improve package processing capacity and address logistics bottlenecks[20] - The company continues to seek network expansion by connecting with new qualified partners and enhancing service capabilities[19] - The company aims to expand its service offerings to create a comprehensive logistics ecosystem, including express delivery, less-than-truckload (LTL) services, and cross-border logistics[18] - The company is actively enhancing its technological infrastructure to support smart logistics, aiming to reduce comprehensive unit costs for sorting and transportation by June 30, 2024, compared to the same period in 2023[22] - The company has implemented over 515 automated sorting devices as of June 30, 2024, compared to 460 devices a year earlier, improving overall sorting efficiency[31] Financial Position - Cash and cash equivalents, restricted cash, and short-term investments totaled RMB 10,542.1 million, RMB 22.3 million, and RMB 9,898.8 million respectively as of June 30, 2024[41] - The company had outstanding bank borrowings of RMB 10,390.8 million as of June 30, 2024, with a weighted average interest rate of 1.8%[41] - The company recorded an investment impairment of RMB 672.8 million primarily due to the acquisition offer from Alibaba Group for Cainiao Smart Logistics Network[38] - Foreign exchange gains decreased by 71.0% from RMB 70.9 million to RMB 20.6 million, attributed to the appreciation of the RMB against USD[38] - The effective tax rate increased by 3.6 percentage points, with income tax expenses rising by 19.5% from RMB 1,030.6 million to RMB 1,231.3 million[39] - As of June 30, 2024, the total capital expenditure for the six months was approximately RMB 3 billion, a decrease from RMB 4.5 billion for the same period in 2023[46] - The company's capital commitments amounted to RMB 4.4 billion as of June 30, 2024, primarily related to the construction of office buildings, sorting centers, and warehouse facilities[46] - The total employee count was 23,906 as of June 30, 2024, with sorting staff making up 31.8% and transportation staff 15.0% of the total[47] - Employee compensation costs for the six months ended June 30, 2024, totaled RMB 1,717.8 million, compared to RMB 1,576.4 million for the same period in 2023, reflecting an increase of approximately 8.9%[47] Shareholder Returns - The company approved an interim dividend of $0.35 per American Depositary Share and ordinary share for the six months ending June 30, 2024, with a payout ratio of 40%[80] - The company plans to pay the interim dividend to shareholders on October 10, 2024, for ordinary shares and on October 17, 2024, for American Depositary Shares[80] - The board approved a dividend of $0.35 per share for the six months ended June 30, 2024, reflecting the company's ongoing commitment to returning value to shareholders[142] Corporate Governance - The company has complied with all provisions of the Corporate Governance Code, except for the separation of the roles of Chairman and CEO, which are currently held by the same individual[55] - The Board believes that the current arrangement does not impair the balance of power and authority, allowing for swift and effective decision-making[56] - The Audit Committee has been established in accordance with the listing rules and consists of two independent non-executive directors and one non-executive director[59] - The Audit Committee is responsible for overseeing the company's accounting and financial reporting processes, including the appointment of independent auditors[60] - The company has adopted a securities trading code to regulate all securities transactions by its directors and relevant employees[57] - The company has established four committees to oversee specific aspects of its affairs, including the Audit Committee, Remuneration Committee, Nomination and Corporate Governance Committee, and Environmental, Social, and Governance Committee[58] Market Strategy - The company plans to expand its market presence and enhance product offerings in the upcoming quarters[146] - The company has initiated new product development strategies aimed at increasing market share and customer engagement[146] - The company is exploring potential mergers and acquisitions to strengthen its competitive position in the market[146] - The future outlook remains positive, with guidance suggesting continued revenue growth and profitability improvements[146] - The company is expanding its market presence, with plans to enter three new international markets by the end of the fiscal year[148] - A recent acquisition of a logistics firm is expected to enhance operational efficiency, projected to reduce costs by 5% annually[148] Compliance and Risk Management - The company is committed to sustainable development and has been actively enhancing its corporate governance capabilities in compliance and risk control[23] - The company has not utilized derivative financial instruments to manage interest rate risks, indicating a conservative approach to financial risk management[45] - The company does not anticipate significant impact from ongoing legal or administrative proceedings, and no provisions have been made for potential fines or interest related to employee welfare contributions[144] Future Outlook - The company provided a future outlook, projecting a revenue growth of 10% for the next quarter, targeting RMB 11,909,475[148] - The company plans to implement new strategies focusing on sustainability, aiming for a 30% reduction in carbon emissions by 2025[148]

Investment Rating - The report maintains a "Buy" rating for the company, citing its ability to balance volume and price in a competitive market environment [6] Core Views - The company reported H1 2024 revenue of RMB 206.9 billion, up 10.5% YoY, with adjusted net profit attributable to ordinary shareholders increasing 12.1% YoY to RMB 50.1 billion [3] - In Q2 2024, revenue grew 10.1% YoY to RMB 107.3 billion, with adjusted net profit up 9.2% YoY to RMB 27.8 billion [3] - The company's parcel volume grew 11.8% YoY in H1 2024, with Q2 growth at 10.1%, while average revenue per parcel declined slightly by 1.7% to RMB 1.22 [4] - Gross profit increased 13.6% YoY to RMB 66.2 billion in H1 2024, with gross margin improving by 0.9 percentage points to 32.0% [4] - Operating expenses rose 15.4% YoY to RMB 14.9 billion in H1 2024, while financial expenses improved [5] - The company expects full-year parcel volume growth of 15-18% and forecasts net profit attributable to shareholders of RMB 97.7 billion, RMB 110.6 billion, and RMB 123.5 billion for 2024-2026, representing YoY growth of 11.7%, 13.2%, and 11.6% respectively [6] Financial Performance Summary - The company's 2024-2026 revenue is projected to grow at a CAGR of 10.2%, reaching RMB 514.3 billion by 2026 [7] - EBITDA is expected to increase from RMB 102.8 billion in 2024 to RMB 182.9 billion in 2026 [7] - EPS is forecasted to grow from RMB 10.83 in 2023 to RMB 15.20 in 2026 [7] - The company's P/E ratio is expected to decline from 12.2X in 2024 to 9.7X in 2026, while P/B ratio is projected to decrease from 1.81X to 1.49X over the same period [7] - ROE is anticipated to improve from 14.87% in 2024 to 15.47% in 2026 [8] Operational Efficiency - The company achieved a 6.7% YoY reduction in per-parcel transportation costs in H1 2024, driven by scale effects [4] - Sorting center costs per parcel increased 4.6% YoY in Q2 2024 due to automation equipment upgrades [4] - The company's asset-liability ratio stood at 33.07% as of the latest reporting period [1] Market Position and Strategy - The company has maintained stable pricing despite industry competition, focusing on value over volume [4] - As a leading e-commerce logistics provider, the company is well-positioned to benefit from industry growth and cost efficiency improvements [6] - The company's strategy of avoiding loss-making parcels has contributed to its stable financial performance [4]

2024 年 08 月 23 日 公司研究 评级：买入(维持) 研究所： 证券分析师： 祝玉波 S0350523120005 zhouyb01@ghzq.com.cn [Table_Title] 散单件量年底有望翻倍，核心成本再创新低 ——中通快递-W（02057）2024 年上半年及二季 度业绩点评 最近一年走势 相对恒生指数表现 2024/08/23 表现 1M 3M 12M 中通快递-W 2.6% -16.1% -10.4% 恒生指数 1.0% -6.5% -1.1% 物流*祝玉波》——2024-03-21 事件: | --- | --- | |------------------------|---------------| | 市场数据 | 2024/08/23 | | 当前价格（港元） | 161.50 | | 52 周价格区间（港元） | 124.10-203.40 | | 总市值（百万港元） | 130,276.90 | | 流通市值（百万港元） | 130,276.90 | | 总股本（万股） | 80,666.81 | | 流通股本（万股） | 80,666.81 | | 日均成交额（百万 ...

证券研究报告 港股公司|公司点评|中通快递-W（02057） Q2 单票价格同比持平，经营业绩保持 稳健增长 请务必阅读报告末页的重要声明 glzqdatemark1 2024年08月23日 证券研究报告 |报告要点 2024H1，公司实现营收 206.9 亿元，同比增长 10.5%，实现调整后归母净利润 50.1 亿元，同 比增长 12.1%。2024Q2 公司实现营收 107.3 亿元，同比增长 10.1%，实现调整后净利润 28.1 亿元，同比增长 10.9%。公司中期派息每股美国存托股及普通股 0.35 美元，对应分红率为 40%。 |分析师及联系人 李蔚 SAC：S0590522120002 请务必阅读报告末页的重要声明 1 / 5 港股公司|公司点评 glzqdatemark2 2024年08月23日 中通快递-W(02057) Q2 单票价格同比持平，经营业绩保持稳健增 长 | --- | --- | |------------|---------------| | 行 业： | 交通运输/物流 | | 投资评级： | 买入（维持） | | 当前价格： | 165.50 港元 | 基本数据 总股 ...

Investment Rating - The report maintains a "Strong Buy" rating for ZTO Express (02057.HK) [4][9][15] Core Views - ZTO Express achieved a business volume of 15.62 billion pieces in the first half of 2024, representing a year-on-year growth of 11.8%. The second quarter saw a business volume of 8.45 billion pieces, up 10.1% year-on-year [2][3] - The company's market share decreased from 21.6% to 19.6% year-on-year in Q2, as ZTO prioritized revenue quality over volume, leading to slower growth compared to the industry average [2][3] - Despite a decline in market share, ZTO's revenue quality improved, with Q2 single-ticket revenue slightly increasing to 1.24 CNY from 1.23 CNY year-on-year, indicating a focus on quality service [2][3] - The report anticipates a business volume growth rate of at least 18% in the second half of the year to meet the annual guidance of 15-18% growth [2][3] Financial Performance Summary - For the first half of 2024, ZTO reported a net profit attributable to shareholders of 4.04 billion CNY, a decrease of 4.1% year-on-year. Adjusted net profit was 5.03 billion CNY, up 13.0% year-on-year, primarily due to a 673 million CNY impairment charge on equity investments [2][3] - The report projects net profits for 2024-2026 to be 9.38 billion CNY, 11.72 billion CNY, and 13.37 billion CNY, respectively, with corresponding P/E ratios of 12.9X, 10.3X, and 9.0X [3][7] - The company maintains a balanced strategy of enhancing service quality, business scale, and profitability, which has led to a strong brand recognition and customer satisfaction [3][7] Cost and Profitability Analysis - In Q2, ZTO's single-ticket cost was 0.82 CNY, a slight increase of 0.7% year-on-year, with transportation costs decreasing by 6.8% to 0.39 CNY, while sorting costs rose by 4.6% to 0.26 CNY [2][3] - The report indicates that while single-ticket costs have stabilized, there is potential for further cost reduction as new equipment utilization increases with growing business volume [3][8]