Core Viewpoint - The express delivery sector is currently undervalued, with continuous growth in the e-commerce market and new demands emerging from lower-tier markets and reverse logistics, indicating strong resilience in industry demand [1] Group 1: Industry Performance - The express delivery industry remains robust, with July 2025 revenues reaching 120.64 billion yuan and business volume at 16.40 billion pieces, reflecting year-on-year growth of 8.9% and 15.1% respectively [1] - From January to July 2025, the cumulative express delivery revenue was 839.42 billion yuan, up 9.9% year-on-year, while the cumulative business volume reached 112.05 billion pieces, increasing by 18.7% [1] - SF Express leads the industry with July 2025 revenue of 18.657 billion yuan and business volume of 1.377 billion pieces, and from January to July 2025, it achieved a market share increase of 0.5 percentage points [1] Group 2: Demand and Pricing Dynamics - The express delivery sector benefits from strong demand resilience, driven by trends such as smaller package sizes, increasing reverse logistics, and the advantages of lower-tier markets, with industry volume growth significantly outpacing retail sales growth [2] - The trend towards lighter and smaller packages, along with intensified price competition, has impacted the average revenue per package, leading to a more competitive pricing environment [2] Group 3: Regulatory Environment - The State Post Bureau's emphasis on "anti-involution" aims to foster healthy price competition within the express delivery industry, reducing the likelihood of a return to the severe price wars seen in 2020 [3] - As price increases are gradually implemented across various regions, the profitability per package for express delivery companies is expected to improve, enhancing the market position of leading firms [3]