ZTO Latest Report

Performance Review

ZTO Express achieved an operating revenue of US$12.92 billion as of December 31, 2024, up 21.66% from US$10.62 billion in 2023, reflecting significant improvements in market demand, service expansion, and operational efficiency.

Key Data in the Financial Report

1. The operating revenue in 2024 was US$12.92 billion, up US$2.3 billion from US$10.62 billion in 2023, with a growth rate of 21.66%.

2. The market share at the end of Q2 2024 was 19.6%, down 2 percentage points from the same period last year, marking the first decline in market share.

3. The cumulative revenue in the first half of 2024 was RMB20.686 billion, up 10.5% YoY; the net profit was RMB4.038 billion, down 4.1% YoY.

4. The overall growth rate of the express delivery industry is expected to be between 15% and 20%, with ZTO Express' growth rate of 21.66%, outperforming the industry average.

Peer Comparison

1. Industry-wide analysis: The express delivery industry has seen a continuous rise in overall demand in the post-pandemic recovery phase, with an expected overall growth rate of 8% in 2024, but the market trend may maintain a growth above 10%. ZTO Express' significant growth in this context is much higher than the industry average, demonstrating its competitiveness and adaptability in the market.

2. Peer evaluation analysis: ZTO Express' revenue growth rate in comparison with SF Holding and YTO Holding shows strong market expansion capabilities, although the market share has declined, the company's performance in specific markets remains outstanding, indicating its effectiveness in customer acquisition and service optimization.

Summary

ZTO Express' significant revenue growth in 2024 is closely related to the improvement in market demand, business expansion, and operational efficiency. However, the decline in market share and net profit suggest that the company needs to take more proactive measures to maintain its market position and profitability in the fiercely competitive express delivery industry.

Opportunities

1. With the continuous growth of the e-commerce industry, ZTO Express can attract more customers by expanding its express delivery services and improving service quality.

2. The newly launched "ZTO Express Good Fast" and "ZTO Express Fly Fast" services can enhance customer experience and increase customer loyalty.

3. The use of unmanned vehicles and intelligent scheduling systems can further reduce costs and increase profit margins.

4. The launch of global fresh products delivery within one hour can open up new market opportunities, especially in the food and fresh produce sectors.

Risks

1. The decline in market share may affect the company's long-term competitiveness, especially in the face of intense competition.

2. The decline in net profit may affect investor confidence and lead to stock price fluctuations.

3. The measures to improve operational efficiency require continuous investment, and if not effectively implemented, may lead to increased costs.

4. The overall economic pressure and uncertainty in the industry may affect future revenue growth.