- Adjusted earnings per American depositary share (ADS) were 3.38 yuan, exceeding the estimate of 3.30 yuan and up from 3.07 yuan year-over-year (y/y).
- Earnings per ADS were 3.16 yuan, an increase from 3.07 yuan y/y.
- Total revenue was 10.73 billion yuan, a 10% increase y/y, slightly above the estimate of 10.71 billion yuan.
- Freight forwarding services revenue was 233.2 million yuan, a decline of 2.4% y/y, below the estimate of 239.8 million yuan.
- Express delivery services revenue was 9.88 billion yuan, up 9.8% y/y, close to the estimate of 9.86 billion yuan.
- Revenue from the sale of accessories was 580.4 million yuan, a substantial 24% increase y/y, above the estimate of 546.5 million yuan.
- Other revenue came in at 36.4 million yuan, a 3.3% increase y/y, but below the estimate of 39.6 million yuan.
- Adjusted EBITDA was 4.34 billion yuan, marking a 12% rise y/y, slightly above the estimate of 4.3 billion yuan.
- Parcel volume for 2024 is projected to be between 34.73 billion and 35.64 billion, representing a 15% to 18% increase y/y.
- ZTO’s Chief Financial Officer, Ms. Huiping Yan, commented on operational improvements, noting a decrease in unit sorting and transportation costs by 2 cents.
- Analyst ratings include 20 buys, 2 holds, and 1 sell.
ZTO Express Cayman on Smartkarma
Analyst coverage of ZTO Express Cayman on Smartkarma reveals contrasting insights from Daniel Hellberg and Eric Wen. Hellberg, with a bearish view, highlights weak pricing trends impacting the express delivery sector’s stock performance. Despite strong volume growth, companies like YTO Express face challenges in maintaining profitability amidst pricing pressures. On the other hand, Wen adopts a bullish stance, citing ZTO’s strong financial position, favorable market trends, and shareholder return plans as drivers of continued growth and investor returns.
Considering Hellberg’s concerns about volume growth outpacing EPS growth and management’s cautious outlook for 2024, investors might approach ZTO Express Cayman with caution. In contrast, Wen’s positive sentiment towards ZTO’s strategic positioning and potential shareholder returns presents a more optimistic viewpoint. These diverging perspectives from respected analysts offer valuable insights for investors navigating the dynamics of the express delivery market and considering investment opportunities in companies like ZTO Express Cayman.
A look at ZTO Express Cayman Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, ZTO Express Cayman shows a promising long-term outlook. With strong scores in growth, resilience, and momentum, the company is positioned to expand and withstand market challenges. ZTO Express’s focus on providing express delivery services through a wide network, along with value-added logistics services, bodes well for its future performance.
While the company scores lower in dividend payout, its solid performance in value, growth, resilience, and momentum factors is indicative of its potential for sustained success. ZTO Express Cayman’s ability to serve customers globally enhances its market position and offers opportunities for further growth in the express delivery industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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