ab Global Research owered by UBS Evidence Lab YES P 2 July 2025 China Logistics Sector APAC Focus: Parcel pricing near bottom, prefer smaller players on vol. and margin expansion Investors are increasingly concerned about the pricing dynamics in China's parcel industry. However, we believe price competition will largely stabilise, supported by UBS Evidence Lab survey (> Access Dataset) and our supply-demand analysis. We expect ZTO, YTO, STO, Yunda and J&T (Tongda) in aggregate to deliver a 2024-27E earnings ...

China’s top leadership pledges to curb aggressive price competition among businesses, aiming to accelerate efforts toward a unified national market to help boost domestic demand https://t.co/pxvXX3ar0D ...

24 June 2025 ab Global Research First Read China Construction Machinery Sector Takeaways from expert meeting: domestic excavator demand under pressure in off-season, but expect DD growth in FY25E Domestic demand may fluctuate in the short term, but upward trajectory of the industry remains intact We invited a construction machinery expert to review the sales performance in 5M25 and provide a future outlook. Key takeaways include: 1) domestic excavators sales in May did not sustain the high growth seen in 4M ...

4 June 2025 | 7:59PM HKT China Logistics Intense price competition to further weigh on express profitability; Buy integrated players SF/JDL & leader ZTO Our China express delivery coverage concluded 1Q25 results with better-than-expected volumes yet widened year-on-year declines in economy parcel ASPs, leading to group GP/EBIT yoy declines for most franchise-based express delivery names, while integrated full-service logistics service providers delivered relative earnings strength/resilience (SF 1Q EBIT +20 ...

Investment Rating - Industry View: In-Line [6] Core Insights - The recent sell-off in the electric vehicle (EV) sector was triggered by price cuts from BYD, reflecting market anxiety over weak end-demand and high valuations [9] - The ongoing price competition is expected to continue, influenced by tough comparisons and an approaching off-season [2] - Brands that can avoid direct price competition, such as Li Auto, may perform better, while traditional OEMs are less likely to be safe havens [4][5] Summary by Sections Investor Questions - The impact of price cuts on mass market brands like BYD is expected to be manageable for Q2 results, as the additional discounts are not as severe as initially perceived [3] - The focus for OEMs is likely to remain on volume scale, with BYD maintaining its full-year target of 5.5 million units for now [3] - Brands like Li Auto may be better positioned to navigate the current market dynamics, while traditional OEMs could face volume losses [4][5] Market Dynamics - The sell-off reflects concerns about prolonged price wars that could align stock prices with shaky fundamentals as the auto sector enters a low season [9] - The supply chain is anticipated to show resilience in Q2, but potential ripple effects into the second half of the year should be monitored [5] Company Ratings - BYD Company Limited: Overweight [62] - Geely Automobile Holdings: Overweight [64] - Li Auto Inc.: Overweight [64] - XPeng Inc.: Overweight [64]