Group 1 - The report maintains a "recommended" investment rating for the express logistics industry, highlighting low valuations and the need to monitor changes in industry competition and trade policies [1][6] - The express logistics industry experienced a significant demand increase, with a total of 788 billion packages delivered from January to May 2025, representing a year-on-year growth of 20.1% [6][11] - The average express delivery price decreased to 7.5 yuan per package, down 8.2% year-on-year, indicating intensified price competition within the industry [6][22] Group 2 - Major companies in the express logistics sector, such as Shentong and Jitu, saw their market shares increase, with Shentong's market share rising by 0.5 percentage points year-on-year [6][14] - The report indicates that the overall cost per package for major companies has decreased significantly due to economies of scale and improved operational efficiency [29][32] - Despite the pressure on single-package profitability, Shentong and SF Express reported year-on-year gross profit increases of 14% and 8%, respectively, due to operational optimizations [32][34] Group 3 - The express logistics index outperformed the broader market, with a 12% increase in the index from the beginning of the year to June 30, 2025 [34][35] - The report emphasizes that the demand growth is expected to remain strong, with an annual growth rate projected to exceed 15% for 2025 [37][43] - The report identifies key companies for investment consideration, including SF Express, Zhongtong Express, and YTO Express, based on their competitive advantages in network management and cost control [6][49] Group 4 - The comprehensive logistics sector is facing pressure from both domestic and international demand, with a focus on trade negotiations impacting performance [53][58] - The report notes that contract logistics prices are under pressure due to insufficient domestic demand and cost-cutting pressures from businesses [61] - The air freight sector has seen a 23.4% year-on-year increase in international cargo turnover, although it faces potential downward pressure from trade policy changes [61][64]