Core Viewpoint - The express delivery industry is expected to maintain a single-digit growth rate, with a projected year-on-year increase of 5% in November 2025, reflecting a slowdown in growth compared to previous years [1][2]. Group 1: Industry Growth and Performance - The express delivery volume during the e-commerce Double Eleven shopping festival is expected to increase by 9% year-on-year, a significant decrease from the 21% growth rate observed in 2024 [1][2]. - The average daily volume during the shopping festival is 1.18 times that of regular days, with a peak daily volume increase of 6.6% year-on-year, indicating a diminishing marginal effect of the shopping festival on consumer spending [2][3]. Group 2: Revenue and Market Share - The implementation of anti-involution policies has effectively increased the revenue per package, with YTO, Yunda, and Shentong seeing revenue increases of 0.16, 0.25, and 0.44 yuan respectively from July to November [3]. - The market concentration in the express delivery sector has stabilized, with the CR8 index remaining at 86.9 in November, indicating a balanced market share among major players [3]. - The market shares for Zhongtong, YTO, Yunda, Shentong, and Jitu in Q3 2025 were 19.4%, 15.6%, 13.0%, 13.2%, and 11.3% respectively, showing slight fluctuations [3]. Group 3: Profitability Recovery - The anti-involution measures have contributed to a recovery in profitability, with Zhongtong, YTO, Yunda, and Shentong reporting net profit margin changes of -0.9%, +0.07%, -1.5%, and +0.5% year-on-year respectively [3]. - The trend of profitability recovery is expected to continue into Q4, contingent on the sustained implementation of anti-involution policies [3][4]. Group 4: Regulatory Environment and Competitive Strategies - The anti-involution policies initiated by the State Post Bureau have effectively countered "involution-style" competition, supported by local postal authorities through price and market share supervision [4]. - The positive effects of the anti-involution measures are anticipated to continue, promoting healthy competition and profitability within the industry [4]. Group 5: Investment Recommendations - The express delivery sector is viewed positively, with recommendations for leading companies such as Zhongtong Express and Jitu Express, which are expected to benefit from improved profitability and high growth in overseas volumes [5]. - SF Express is noted for its proactive market expansion strategy, which is expected to yield positive results as cost control measures are strengthened [5].

Investment Rating - The report maintains a "Recommended" rating for the transportation industry [2] Core Insights - The shipping sector is experiencing a recovery in oil transportation due to improved demand post-holidays and geopolitical tensions [6][16] - The aviation industry aims to achieve a passenger volume of 810 million in 2026, reflecting a growth rate of 5.2% [23][24] - The express delivery sector is expected to see a gradual recovery in competition and profitability, with a focus on major players like SF Express [20] Shipping - The oil shipping sector is rebounding due to increased cargo availability from the Middle East and geopolitical sanctions affecting supply [6][16] - Container shipping rates are showing slight increases, with strong pricing power among shipowners before long-term contract negotiations [11][12] - Key stocks to watch include COSCO Shipping Energy, China Merchants Energy, and Pacific Shipping [16] Infrastructure - Weekly data indicates a decline in truck traffic and rail freight, with road truck traffic at 46.964 million vehicles, down 14.9% week-on-week [17][18] - Port throughput for the first week of 2026 was 25.4953 million tons, showing a slight decrease but a year-on-year increase of 7.7% in container throughput [18] - Recommended stock for infrastructure investment is Anhui Expressway [18] Express Delivery - In November 2025, express delivery volume reached 18.06 billion pieces, a year-on-year increase of 5%, while revenue decreased by 3.7% [19][20] - The competitive landscape is expected to stabilize, with major companies like SF Express anticipated to see profit growth in 2026 [20] - Recommended stocks include SF Express, ZTO Express, YTO Express, and Yunda Express [20] Aviation - The aviation sector is entering a critical period with the Spring Festival approaching, and passenger volume is projected to grow by 5.2% in 2026 [23][24] - Recent data shows a year-on-year increase in domestic passenger volume of 1.5% and a decrease in ticket prices [21][24] - Recommended stocks include Air China, China Southern Airlines, and Spring Airlines [24] Logistics - The cross-border air freight price index has decreased by 19.9% week-on-week, indicating a significant drop in logistics costs [25]

Core Insights - Zhongtong Express Group has officially commenced the construction of its smart operation center in Foshan, Guangdong Province, on January 9 [1] - The project covers an area of 212 acres with a total investment of 5 billion yuan [1] - The first phase of investment amounts to 3 billion yuan, focusing on building four core components: an unmanned logistics equipment assembly center, an industrial warehousing service center, an integrated smart operation settlement center, and a smart express application scenario center [1] - Once fully operational, the project is expected to generate an annual revenue exceeding 3 billion yuan [1]

Group 1 - The Nasdaq Golden Dragon China Index increased by 1.09% on January 8 [1] - Key Chinese stocks saw significant gains, with GDS Holdings rising over 8% and Bilibili increasing by more than 6% [1] - Tencent Music and Alibaba both rose by over 5%, while other companies like Kingsoft Cloud and Xpeng Motors saw increases of over 3% [1] Group 2 - JD.com and Vipshop experienced gains of over 2%, while ZTO Express and Futu Holdings rose by more than 1% [1] - Ctrip and NetEase had slight increases, indicating a generally positive market sentiment for these companies [1] - Conversely, Baidu and Bawang Tea House fell by over 3%, with Manbang and NIO also experiencing declines of more than 1% [1]

Core Viewpoint - ZTO Express (Cayman) Inc. has shown positive stock performance, with a 3.30% increase over the past month and a 21.17% increase over the past year, leading to optimism among long-term shareholders, while concerns about potential overvaluation based on the price-to-earnings (P/E) ratio are also present [1]. Group 1: Stock Performance - The current trading price of ZTO Express is $21.51, reflecting a 0.84% increase in the current session [1]. - Over the past month, ZTO Express stock has increased by 3.30% [1]. - In the past year, the stock has appreciated by 21.17% [1]. Group 2: Price-to-Earnings Ratio Analysis - The P/E ratio is a critical metric for evaluating the company's market performance, comparing the current share price to the company's earnings per share (EPS) [4]. - A higher P/E ratio suggests that investors expect better future performance, which may indicate overvaluation, but it can also reflect a willingness to pay a premium for anticipated growth [4]. - ZTO Express has a lower P/E ratio compared to the Air Freight & Logistics industry average of 22.04, which may imply that the stock is undervalued or that investors expect it to perform worse than peers [5]. Group 3: Limitations of P/E Ratio - While a lower P/E can indicate undervaluation, it may also suggest a lack of expected future growth from shareholders [7]. - The P/E ratio should not be used in isolation; other factors such as industry trends and business cycles also influence stock prices [7]. - Investors are advised to consider the P/E ratio alongside other financial metrics and qualitative analyses for informed investment decisions [7].

国泰海通发布研报称，2025年11月全行业快递件量同比+5%，继续维持个位数增速。反内卷下行业份额 集中趋缓，中通/圆通/韵达/申通25Q3净利率分别同比-0.9/+0.07/-1.5/+0.5pct，环比 +4.8/+0.5/-0.07/+0.6pct，头部企业普遍实现盈利能力修复，预计Q4盈利修复趋势将持续。考虑本轮反内 卷取得的良好效果，以及快递企业盈利修复后的正反馈效应，预计反内卷政策将有望持续，在件量继续 稳健增长的基础上保障行业良性竞争与盈利能力继续修复。 国泰海通主要观点如下： 快递件量增速Q4降至个位数，双十一大促峰值继续平滑 2025年11月全行业快递件量同比+5%，继续维持个位数增速。过去两年轻小件是驱动件量维持较快增长 的重要驱动，2025年7月以来快递反内卷有效推动电商快递行业性价格修复，推测或影响轻小件增长趋 势并提升快递需求品质。其中，电商双十一大促期间件量同比+9%，较2024年大促日均件量21%的增速 放缓，或源于2024年大促首次大幅延长造就高基数，及2025年大促进一步提前启动致件量前移。 大促日均件量是日常的1.18倍，单日件量峰值同比+6.6%，均连续三年收窄，反映大促 ...

Core Viewpoint - The article highlights the rise of the express delivery industry in China, particularly focusing on the "Three Links and One Reach" (Shentong, Yunda, Yuantong, and Zhongtong) and their roots in the small county of Tonglu, Zhejiang, which is recognized as the "Hometown of Private Express" in China [6][7][12]. Group 1: Industry Overview - The "Three Links and One Reach" companies dominate the Chinese express delivery market, holding over 60% market share as of 2024 [6]. - Tonglu County is set to become a significant logistics hub with the establishment of "Tongda Future City," which will house the second headquarters of the "Three Links and One Reach" companies [9][10]. - The logistics industry in Tonglu is expected to form a large industrial cluster, attracting numerous upstream and downstream enterprises [12][56]. Group 2: Historical Context - The founders of the "Three Links and One Reach" companies originated from Tonglu, with a notable figure being Nie Tengfei, the founder of Shentong, who is regarded as the pioneer of private express delivery in China [14][17][22]. - The express delivery business began in the early 1990s, with Shentong being one of the first private companies to break the monopoly of the postal service [22][23]. - The initial success of Shentong was driven by a small team that effectively utilized local resources and community trust to expand their operations [27][36]. Group 3: Recent Developments - The "Tongda Future City" project, with a total investment of 13 billion yuan, aims to integrate technology and logistics, featuring various headquarters and innovation centers [52][54]. - The city is expected to focus on technological innovation, with companies like Chenchen Technology and Zhejiang Inline Power establishing operations to enhance logistics efficiency [56][57]. - The development of "Tongda Future City" represents a significant shift from labor-intensive to technology-driven logistics solutions, showcasing the evolution of the industry in Tonglu [63].

Summary of Key Points Group 1: 52-Week Highs - A total of 134 stocks reached their 52-week highs as of January 6, with the highest increase recorded by Macau Legend Development (02962) at 96.00% [1] - Other notable stocks include Auda Holding (09929) with a high rate of 38.57% and China National Pharmaceutical Group (08247) at 24.80% [1] - The closing prices and peak prices for these stocks were as follows: Macau Legend Development at 0.066 and 0.098, Auda Holding at 0.920 and 0.970, and China National Pharmaceutical Group at 3.170 [1] Group 2: 52-Week Lows - The report also highlighted stocks that reached their 52-week lows, with the largest decline seen in Xie Tong Communication (02996) at -29.41% [4] - Other significant declines included Starry Sky Chinese Culture (06698) at -14.14% and Huazhong Biotech - B (02396) at -12.63% [4] - The closing and lowest prices for these stocks were: Xie Tong Communication at 0.016 and 0.012, Starry Sky Chinese Culture at 0.940 and 0.850, and Huazhong Biotech - B at 12.000 and 11.900 [4]

Summary of ZTO Express 4Q25 Preview Conference Call Company Overview - **Company**: ZTO Express (ZTO.N) - **Industry**: Transportation & Infrastructure - **Market**: Hong Kong/China Key Points Earnings Outlook - The earnings outlook for 4Q25 remains largely unchanged compared to the management discussion post-3Q25 [1] - ZTO is expected to achieve a net profit of approximately Rmb2.7 billion, which is flat year-over-year [3] Market Share Dynamics - ZTO is projected to gain 1 percentage point in market share in 4Q25, recovering from a loss of 0.6 percentage points in 3Q25 and 0.3 percentage points in 1H25 [2] - Industry volume growth is anticipated to slow from 13% in 3Q25 to 5% year-over-year in 4Q25, attributed to decreased low-value parcels and a high base from the previous year [2] - ZTO's market share gains resumed in October 2025, leading to a 1 percentage point year-over-year gain in 4Q25 [2] Profitability Metrics - Unit operating profit is expected to improve by Rmb0.05 quarter-over-quarter to Rmb0.30 in 4Q25, despite a slight increase in unit costs during the peak season [3] - The unit profit is projected to remain stable at Rmb0.26, with higher operating profit offset by lower tax credits [3] 2026 Outlook - The outlook for 2026 indicates continued market share gains for ZTO, with manageable downside risks to unit profit [4] Investment Recommendation - The recommendation for ZTO remains "Overweight" (OW), with sustained market share gains being a key focus for investors [5] - The stock is currently trading at a price-to-earnings (P/E) ratio of 12x for 2026 estimates, with a forward free cash flow yield of 6-8%, which is attractive compared to the peer average of 1% [5] - A reduction in capital expenditures is expected to enhance shareholder returns [5] Valuation and Risks - The valuation methodology includes a discounted cash flow approach with a probability-weighted scenario analysis: 15% bull case, 75% base case, and 10% bear case [12] - Key assumptions include a weighted average cost of capital (WACC) of 13.2% and a terminal growth rate of 3% [13] - Upside risks include faster-than-expected market share gains and better cost control, while downside risks involve intensified competition and potential market share losses [15] Financial Metrics - Current market capitalization is Rmb119.7 billion, with an enterprise value of Rmb108.1 billion [7] - Earnings per share (EPS) estimates for the next fiscal years are Rmb11.76 for 2025 and Rmb12.93 for 2026 [7] Additional Insights - The company is positioned to achieve approximately 10% year-over-year profit growth in 2026 under the base case scenario [10] - The bear case scenario suggests potential challenges in achieving both earnings growth and market share gains [10] This summary encapsulates the critical insights from the ZTO Express conference call, highlighting the company's performance, market dynamics, and investment outlook.

Core Insights - ZTO Express Cayman (ZTO) shares have surged 11.4% over the past three months, outperforming the Zacks Transportation sector's 9% rise [1][7] Company Performance - ZTO's growth is driven by the broader momentum in China's express delivery sector, with national parcel volumes exceeding 150 billion, indicating strong consumer demand and an improving economy [4] - The company reported a 9.8% year-over-year increase in parcel volumes for Q3 2025, with revenues from its core express delivery services unit rising 11.6% year over year [5][7] - ZTO expects parcel volume for 2025 to reach between 38.2 billion and 38.7 billion, reflecting a solid year-over-year growth of 12.3% to 13.8% [5] Financial Stability - ZTO's current ratio improved from 0.96 in Q3 2024 to 1.38 in Q3 2025, indicating enhanced financial stability and the ability to meet short-term obligations [6] Market Outlook - The Zacks Consensus Estimate for full-year 2025 and 2026 has been revised upward by 9.2% and 10.1% respectively over the past 60 days, reflecting positive market sentiment [8]