Zhongtong Express has ranked first in the industry market share for 4 consecutive years.
US stocks opened on Thursday, and ZTO Express hit an all-time high of $ 26.55. As of the close of the day, the three major U.S. stock indexes all fell more than 3%, while Zhongtong Express rose 1.58% to 26.39 US dollars against the market.
Since the first trading day (January 27) after the Spring Festival of 2020, the share price of Zhongtong has increased by 18.8%. At present, the market value of Zhongtong has crossed the US $ 20 billion mark to US $ 20.636 billion (approximately RMB143.144 billion), ranking second in the market value of the express delivery industry, and the industry leader SF Holdings has a market value of RMB212.562 billion.
Zhongtong Express’s recent stock price trend may benefit from the overall performance of the express industry. In March, the stock price of Zhongtong Express got rid of the previous downturn and rebounded.
The epidemic has increased the online consumer density of Chinese users, and the demand for online shopping has grown significantly. Guo Sheng Securities released an industry weekly report on February 23, reviewing the impact of SARA on the transportation industry, the express delivery industry may benefit from the epidemic. For example, in terms of cost, tolls account for about 20% to 30% of the transportation costs of express delivery companies. Toll roads are temporarily exempted from tolls, which reduces the transportation costs of express delivery logistics companies. “The sooner the express demand erupts, the more favorable it is to resume work.”
In terms of resumption of production and resumption, Lai Haisong, chairman of Zhongtong Express Group, revealed to the media on March 2 that Zhongtong ’s production capacity has recovered by more than 80%, and it is still steadily increasing, and it is confident that it will complete its annual target. On that day, the daily business volume of Zhongtong Express exceeded 32 million pieces.
As for the company itself, it is also continuing to release benefits to the secondary market: Zhongtong Express has been leading the market share for four consecutive years.
“Four links and one reach” market share (picture from Tiger Securities)
From the current point of view, the market share advantage of Zhongtong Express is expected to continue to be maintained, which is crucial for its future development. CITIC Construction Investment said in evaluating Q3 Express’s 2019 Q3 performance that the express industry has entered the stage of integration and concentrationNow, the head express companies are working hard to form a virtuous circle of “low cost → market share expansion → scale effect to further reduce costs”, and then expand market share. According to the financial report data, in the third quarter of 2019, Zhongtong Express’s unit volume maintained rapid growth, with a market share of 18.9%.
In addition, Zhongtong Express will release the U.S. stock market on March 16th after the U.S. stock market closed. As of press time, according to Bloomberg’s comprehensive market expectations, Zhongtong Express’s fourth-quarter revenue was RMB 6.973 billion and adjusted net profit was RMB 1.524 billion.