Investment Rating - The report maintains a "Positive" outlook for the transportation industry, indicating an expectation of performance exceeding the market benchmark by over 5% [5]. Core Insights - In March, the express delivery industry experienced a year-on-year volume growth of 20.3%, with a total of 16.656 billion packages delivered, slightly down from a cumulative growth of 22.4% in January and February [2][10]. - SF Express saw a significant volume growth of 25.4%, outperforming other companies in the Tongda system, and its market share increased by 0.3 percentage points year-on-year [2][17]. - The price competition remains intense within the industry, with year-on-year declines in average revenue per package for Tongda companies, including a 7.6% drop for YTO Express and an 11.7% drop for SF Express [3][27][29]. Summary by Sections 1. Industry Overview - The express delivery sector's volume growth remains robust, with March figures showing a 20.3% increase year-on-year, despite a slight slowdown from earlier months [2][12]. - The growth in same-city deliveries was 4.3%, while intercity deliveries grew by 21.9% [12][14]. 2. Business Volume - SF Express's business volume growth reached 25.4%, significantly higher than its competitors, with a market share increase of 0.3 percentage points [2][17]. - YTO Express, Shentong, and Yunda's growth rates were close to the industry average, with YTO showing a slight edge [2][17]. 3. Revenue per Package - The average revenue per package for Tongda companies saw declines, with Shentong, Yunda, and YTO experiencing year-on-year decreases of 4.3%, 5.8%, and 7.6% respectively [3][27]. - SF Express's average revenue per package fell by 11.7% year-on-year, attributed to an increased proportion of e-commerce packages [3][29]. 4. Structural Changes - The industry concentration ratio (CR8) was 86.9 in March, showing a year-on-year increase of 1.8 but a slight decrease of 0.2 from the previous month [33][35]. - The market share of the four publicly listed companies in the A-share market was 49.8%, a slight increase from 49.6% year-on-year, driven by YTO's market share ambitions and SF's strong growth [33][36]. 5. Investment Recommendations - The report suggests focusing on industry leaders with superior service quality, particularly Zhongtong and YTO, as the industry shifts towards prioritizing service over cost advantages [4][37].