Summary of Conference Call Notes Industry Overview - **Industry**: Hong Kong/China Transportation & Infrastructure - **Key Companies Mentioned**: J&T, ZTO, Yunda, YTO, STO Core Insights - **Market Performance**: J&T, ZTO, Yunda, YTO, and STO have outperformed market indices by 3-15 percentage points since July 10, 2025, likely due to regulatory calls for "anti-involution" [2] - **Pricing Strategies**: - Market pricing hikes are being considered at a regional level to alleviate near-term pressure on franchisees' profits, but limited financial impact is expected on listed companies as pricing adjustments have not occurred at the franchisor level [6] - Most players plan to increase floor market pricing in Yiwu by RMB 0.05-0.1, but no changes are anticipated at the franchisor level, indicating minimal financial impact on listed companies [6] - A possible price hike in Guangdong is being discussed, but regional actions may not lead to nationwide pricing changes [6] - **Market Share Dynamics**: - Ongoing industry consolidation is expected, albeit in a less aggressive manner. Market share leaders ZTO and YTO are preferred due to their higher probabilities of consolidating market share in a competitive environment [6] Financial Valuation and Risks - **YTO Express Group Co Ltd**: - Valuation derived from probability-weighted DCF scenarios: 10% bull case, 80% base case, 10% bear case. Mild probability of unit profit being worse than expected due to price competition [7] - Key assumptions include a WACC of 10.8% and a terminal growth rate of 2% [7] - **ZTO Express**: - Valuation based on a probability-weighted DCF: 15% bull case, 75% base case, 10% bear case. Mild probability of bear case if significant disruptions occur from new entrants [8] - Key assumptions include a WACC of 13.3% and a terminal growth rate of 3% [9] Risks Identified - **Upside Risks**: - Greater-than-expected market share gains, significant cost reductions, alleviated price competition [11] - **Downside Risks**: - Continued market share loss, intensified industry competition, higher unit costs [12] Additional Notes - **Regulatory Environment**: The focus on "anti-involution" indicates a regulatory push to mitigate over-competition in the industry, which may influence future market dynamics [2] - **Market Sentiment**: Despite a surge in short-term sentiment towards all players, a preference remains for market share leaders ZTO and YTO [6]

Core Insights - The article presents the market capitalization rankings of the top 50 Chinese technology and internet companies as of July 25, 2025, highlighting their respective valuations in billions of dollars [1]. Group 1: Market Capitalization Rankings - The top three companies by market capitalization are: 1. Alibaba: $1,000.00 billion 2. Tencent: $800.00 billion 3. Baidu: $600.00 billion [3] - Other notable companies in the top 10 include: - JD.com: $482.47 billion - SMIC (Semiconductor Manufacturing International Corporation): $519.90 billion - Tencent Music: $328.83 billion [3][4] Group 2: Additional Rankings - Companies ranked from 11 to 20 include: - Li Auto: $316.74 billion - Xpeng Motors: $182.36 billion - NIO: $109.38 billion [4][5] - The rankings continue with companies such as: - New Oriental: $74.44 billion - Kingsoft: $61.55 billion - Perfect World: $38.92 billion [5]

Key Takeaways from the Conference Call Industry Overview - The report focuses on the **China Express** industry, specifically analyzing the performance of major express delivery companies in the Asia Pacific region for **June 2025** [1] Core Insights - **Volume Growth**: - SF Express led the market with a **32% YoY volume growth**, followed by YTO at **19% YoY**. - Both STO and Yunda experienced lower growth rates at **11%** and **7% YoY**, respectively, resulting in a loss of market share of **0.5ppt** and **1.0ppt** [2] - **Revenue Performance**: - SF Express achieved a **14% YoY revenue growth**, outperforming YTO and STO, which recorded **11%** and **10% YoY growth**, respectively. - Yunda's revenue growth slowed significantly to **3% YoY**, down from **9% YoY** for the industry, marking a decline from **7% YoY** in May [3] - **Average Selling Price (ASP)**: - SF's ASP decreased by **13% YoY**, while YTO, Yunda, and STO saw decreases of **7%**, **4%**, and **1%**, respectively. - On a month-over-month basis, SF and STO's ASPs improved by **4%** and **2%**, while YTO and Yunda's ASPs fell to new lows in 2025 [4] Financial Metrics - **June 2025 Financials**: - SF Express: Revenue of **Rmb 19,962 million**, YoY growth of **14.2%**, volume of **1,460 million**, YoY growth of **31.8%**, ASP of **Rmb 13.67** [5] - Yunda: Revenue of **Rmb 4,149 million**, YoY growth of **2.8%**, volume of **2,173 million**, YoY growth of **7.4%**, ASP of **Rmb 1.91** [5] - STO: Revenue of **Rmb 4,341 million**, YoY growth of **10.1%**, volume of **2,184 million**, YoY growth of **11.1%**, ASP of **Rmb 1.99** [5] - YTO: Revenue of **Rmb 5,527 million**, YoY growth of **11.4%**, volume of **2,627 million**, YoY growth of **19.3%**, ASP of **Rmb 2.10** [5] Market Share Dynamics - SF Express's market share increased by **1.1ppt** to **8.7%**, while Yunda's market share decreased by **1.0ppt** to **12.9%**. - STO's market share remained stable at **12.9%**, and YTO's increased by **0.5ppt** to **15.6%** [5] Strategic Insights - SF Express's strong performance is attributed to robust intra-city delivery demand and the implementation of the "Activating Operations" strategy. - The company achieved **10% YoY revenue growth in 1H25**, aligning with its guidance [12] Additional Observations - The report indicates that ZTO and YTO gained a total of **0.7ppt** in market share in **2Q25**, compared to a **0.4ppt** drop in **1Q25**, suggesting a trend of accelerated segment consolidation [12] Conclusion - The express delivery industry in China is experiencing significant shifts, with SF Express maintaining a strong lead in both volume and revenue growth, while Yunda faces challenges in sustaining its market position. The overall market dynamics indicate a consolidation trend among the major players, which could present both opportunities and risks for investors in the sector.

Group 1 - The article presents the market capitalization rankings of the top 50 Chinese technology and internet companies as of July 24, 2025 [1] - The highest-ranked company is Alibaba, with a market capitalization of 1,000 billion [3] - Other notable companies in the top 10 include Tencent with 600 billion and Baidu with 320 billion [3][4] Group 2 - The rankings show significant market values, with companies like JD.com at 489.1 billion and Kuaishou at 431.56 billion [3] - The list includes various sectors such as e-commerce, automotive, and software, indicating a diverse technology landscape [4][5] - Companies like Xpeng Motors and NIO are also featured, with market caps of 179.5 billion and 111.42 billion respectively [3][4]

Investment Rating - Investment recommendation: Outperform the market (maintained) [7] Core Viewpoints - In June, the national express delivery business volume reached 16.87 billion pieces, a year-on-year increase of 15.8%; express delivery revenue totaled 126.32 billion yuan, up 9.0% year-on-year; the average price per ticket in the industry was 7.49 yuan, down 5.85% year-on-year. Under the "anti-involution" policy's soft constraints, the overall competition intensity in the industry is expected to be controllable, and the price decline in the off-season may stabilize. The current valuation of the sector has returned to a relatively low historical level, providing a sufficient margin of safety, suggesting attention to investment opportunities in the sector under the "anti-involution" policy [4][12]. Summary by Sections Business Volume - In June, the national express delivery business volume reached 16.87 billion pieces, a year-on-year increase of 15.8%. The growth rate has slowed down due to the earlier start of the 618 promotion, which brought some volume forward to May [9][17]. - In June, SF Express, YTO Express, Yunda Express, and Shentong Express completed business volumes of 1.46 billion, 2.63 billion, 2.17 billion, and 2.18 billion pieces, with year-on-year growth rates of 31.77%, 19.34%, 7.41%, and 11.14% respectively, with SF Express continuing to lead in growth [20]. Ticket Price - The average ticket price in June was 7.49 yuan, with a year-on-year decline of 5.85%, but an increase of 0.24 yuan compared to May. The average ticket price for the first half of the year was 7.52 yuan, down 7.74% year-on-year [10][28]. - The ticket prices for major express companies in June were 13.67 yuan for SF Express, 2.10 yuan for YTO Express, 1.91 yuan for Yunda Express, and 1.99 yuan for Shentong Express, with year-on-year changes of -13.32%, -6.69%, -4.50%, and -1.00% respectively [36]. Industry Structure - The brand concentration index (CR8) in June was 87.0, unchanged from May and up 1.7 from the same period in 2024. The market shares for SF Express, YTO Express, Yunda Express, and Shentong Express were 8.65%, 15.57%, 12.88%, and 12.95% respectively, with year-on-year increases of 1.05%, 0.46%, -1.00%, and -0.54% [11][46]. Investment Suggestions - The industry demand remains high, and the intensity of price competition is controllable. The report suggests focusing on investment opportunities in the sector under the "anti-involution" policy, as the current valuation has returned to a relatively low historical level, providing a sufficient margin of safety. Specific companies to watch include SF Express, Zhongtong Express, and YTO Express, which are expected to benefit from their operational strategies and market positions [12][49].

Core Insights - The article presents the market capitalization rankings of the top 50 Chinese technology and internet companies as of July 23, 2025, highlighting significant players in the industry [1]. Group 1: Top Companies by Market Capitalization - Alibaba leads the list with a market capitalization of approximately $2879.35 billion [3]. - Xiaomi Group follows with a market capitalization of around $1917.71 billion [3]. - Other notable companies include Oriental Fortune at $523.45 billion, SMIC at $492.43 billion, and JD.com at $488.38 billion [4]. Group 2: Additional Rankings - Kuaishou ranks 11th with a market cap of $410.71 billion, while Tencent Music is at 12th with $330.85 billion [4]. - Li Auto and Baidu are also significant players, with market caps of $330.12 billion and $317.82 billion, respectively [4]. - The list continues with companies like Xpeng Motors at $179.88 billion and ZTO Express at $155.31 billion [5]. Group 3: Lower Rankings - New Oriental has a market cap of $77.82 billion, while Kingdee International is at $72.8 billion [5]. - Other companies in the lower rankings include Ufine Network at $67.26 billion and Tongcheng Travel at $65.15 billion [5]. - The bottom of the list features companies like Yueda Group at $39.94 billion [6].

■核心提示 从生产到消费，从发展到民生，快递包裹打通千城百业、连通国计民生、贯通线上线下、畅通内外循环。今 日，河南日报特推出"拆'箱'大市场"策划报道，从小包裹里探门道，展现我省融入服务全国统一大市场的生 动实践。 中国邮政"郑州—卢森堡"邮货运航线开通现场。 林州市石板岩邮政支局无人机投递快件。 顺丰速运工作人员分拣快递。 京东物流郑州亚一智能物流园区。图片均为受访者供图 "快递进厂"打通循环堵点 对于现在的年轻人来说，打开快乐饮食的方式有多种，其中"嗦"个酸辣粉是种不错的选择。得益于快递速度 给力，下午在直播间下单，第二天中午就能实现酸辣粉自由了。 为啥快递速度这么快？7月12日，记者走进全国最大的酸辣粉生产基地开封丽星食品有限公司，揭晓酸辣 粉"快跑"的答案。 在丽星食品仓库门口，中通快递一辆长17米的箱挂车旁，工作人员正在往车上装运已经贴过快递电子面单的 箱装酸辣粉。 "今天的订单量是2.2万单，需要2辆这种长17米的箱挂车来装运。"中通快递河南管理中心市场部经理张飞 说。 自去年10月份中通快递与丽星食品合作以来，每日9时，中通快递的快递小哥都会准时开车到丽星食品的仓库 进行订单装运。货物全部装车 ...

Group 1 - The core viewpoint of the news is that the increase in the minimum express delivery price in Yiwu is expected to alleviate price pressure in the third quarter, but it does not address the fundamental issues of overcapacity and service homogenization in the industry [1][3] - The average delivery price in Yiwu has been raised by 0.1 RMB to 1.2 RMB, effective from July 18 [1] - Bank of America believes that if there is no industry consolidation, any increase in average prices will not be sustainable [1][3] Group 2 - Bank of America has raised the expected earnings per share for YTO Express, Shentong, and Jitu by 6-7% for the years 2025-2027 [2] - Target prices for these companies have been increased by 18-32% based on the mixed expectations for 2025/2026 [2] - The company maintains a neutral rating on Zhongtong due to slow market share growth but reasonable valuation [2] Group 3 - The structural negative impact on average price and market share control is highlighted, indicating that the price war is unlikely to stop as long as overcapacity exists [3] - Merchants can circumvent the price control by sending packages to nearby areas without such controls [3] - Bank of America suggests that the focus should be on improving the welfare of couriers rather than merely adjusting price controls [3]

Group 1 - The express delivery industry is experiencing sustained high demand, with an expected business volume growth rate of around 15% for the foreseeable future [1] - The current competitive landscape is expected to last for a long time, with anti-involution policies favoring mid-to-late stage companies, leading to a potential easing of competition in the second half of the year [1] - There is a recommendation to focus on the efficiency improvements in e-commerce express delivery, as factors like autonomous vehicles may enhance the competitive advantage of mid-to-late stage companies [1] Group 2 - The express delivery industry's price competition has gone through four phases: 1) moderate price competition (2016-2019), 2) intense price wars (2019-2021), 3) stabilization phase (2021-2022), and 4) a return to competition since 2023 [2] - Historical anti-involution policies have included multiple measures from April to September 2021 aimed at curbing vicious price wars, leading to a price rebound starting in September 2021 [2] - The current industry fundamentals align with anti-involution demands, with clear low-price support, but the likelihood of a comprehensive price increase similar to 2021 is low due to ongoing competition [3] Group 3 - If a price increase occurs, e-commerce express delivery companies could see significant profit elasticity, with past data showing substantial profit rebounds following price hikes [4] - Profit margins for major companies post-price increase in 2022 showed significant year-on-year improvements, with ZTO Express up by 26% and YTO Express up by 105% [4] - Under hypothetical price increases of 3-10%, the profit elasticity for various companies ranges significantly, indicating that mid-to-late stage companies may experience more pronounced profit elasticity due to lower profit baselines [4]

Investment Rating - The investment rating for the transportation industry is "Positive" (maintained) [4] Core Views - The express delivery sector shows significant divergence in June data, with a focus on the industry's anti-involution process [3] - The express logistics market is expanding, supported by the national strategy to boost domestic demand, with a year-on-year growth of 15.8% in express delivery volume in June 2025 [5] - The performance of major express companies varies, with SF Express maintaining a business volume growth rate of over 30%, while other companies like YTO Express and Yunda Express show slower growth [4][5] Summary by Sections Express Logistics - In June 2025, the total express delivery volume reached 16.87 billion pieces, a year-on-year increase of 15.8%, with total revenue of 126.32 billion yuan, up 9.0% [5][24] - Major express companies' performance in June: YTO Express (2.627 billion pieces, +19.34%), Yunda Express (2.173 billion pieces, +7.41%), SF Express (1.460 billion pieces, +31.77%) [4][28] - The market share for these companies is 15.6% for YTO, 12.9% for both Yunda and Shentong, and 8.7% for SF Express [4] Air Transportation - The air travel sector is expected to benefit from macroeconomic recovery, with a year-on-year increase of 4.4% in passenger transport volume in June 2025 [52] - Major airlines are projected to improve their performance in Q2 2025 due to better supply-demand dynamics and lower oil prices [8] Shipping and Ports - The shipping sector is anticipated to benefit from OPEC+ production increases and a favorable economic environment, with a focus on crude oil transportation [16] - The Baltic Dry Index (BDI) increased by 27.8% week-on-week, indicating a recovery in the bulk shipping market [11][68] - Container throughput at Chinese ports showed a slight increase in cargo volume but a decrease in container throughput [81] Road and Rail - In June 2025, road freight volume increased by 2.86% year-on-year, while rail freight volume rose by 7.36% [45] - National logistics operations are running smoothly, with a slight increase in freight truck traffic [14] Supply Chain Logistics - Companies like Shenzhen International and Debon Logistics are expected to benefit from strategic transformations and improved profitability [15]