- ZTO Express has revised its full-year parcel volume forecast to 33.7 billion to 33.9 billion parcels, down from the previous estimate of 34.73 billion to 35.64 billion parcels.
- In the third quarter, ZTO’s adjusted earnings per American depositary receipt were 2.91 yuan, slightly below market expectations of 2.93 yuan.
- The company’s earnings per American depositary receipt increased from 2.84 yuan to 2.90 yuan year-over-year.
- ZTO reported a 10.68 billion yuan revenue for the third quarter, marking an 18% year-over-year increase, surpassing the estimate of 10.43 billion yuan.
- Freight forwarding services generated 240.5 million yuan in revenue, with a minor growth of 0.8% year-over-year, slightly underperforming the forecast of 243.7 million yuan.
- Express delivery services revenue rose to 9.81 billion yuan, an 18% increase year-over-year, exceeding the projected 9.62 billion yuan.
- Revenue from the sale of accessories reached 588.2 million yuan, a significant 28% increase, surpassing the estimated 562.6 million yuan.
- Other revenues amounted to 33.5 million yuan, a 3.9% decline year-over-year, missing the projection of 35.8 million yuan.
- The adjusted EBITDA was 3.74 billion yuan, up by 8.7% year-over-year but below the target of 4.08 billion yuan.
- Parcel volume for the quarter was 8.72 billion, reflecting a 16% year-over-year increase, slightly above the estimate of 8.69 billion.
- For the full year 2024, parcel volume is anticipated to grow between 11.6% and 12.3% year-over-year.
- CFO Huiping Yan highlighted an increase in ZTO’s core express average selling price by 1.8% this quarter, attributing improvements to key account management.
- The company has reduced its annual volume targets based on current market visibility.
- Analyst recommendations include 21 buys, 3 holds, and no sells.
ZTO Express Cayman on Smartkarma
Analyst coverage on ZTO Express Cayman on Smartkarma reveals contrasting views from top independent analysts. Robert McKay‘s research titled “Logistics Shift to Quality Amid Evolved Ecommerce Plans” leans bullish on ZTO’s positioning in the market. According to McKay, as the industry shifts towards higher-end logistics and O2O services, ZTO is well-placed to benefit, with a positive outlook compared to its competitors.
On the other hand, Daniel Hellberg‘s insights present a bearish sentiment towards ZTO Express Cayman. In his report “ZTO Express Q224 Results: Slow Top-Line Growth | Margin Compression in Core Express Business | AVOID,” Hellberg cautions investors to avoid the shares citing concerns about margin compression and slower growth in the core express segment. Despite ZTO’s headline numbers appearing decent, Hellberg advises a cautious approach towards investing in the company based on the current financial performance.
A look at ZTO Express Cayman Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 4.0 |
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
Analysts reviewing the Smartkarma Smart Scores for ZTO Express Cayman, a leading express delivery company, indicate a positive long-term outlook based on its strong performance in key areas. With top scores in Dividend and Growth factors, ZTO Express demonstrates stability and potential for profitability. Its Resilience score further highlights the company’s ability to weather market uncertainties effectively. Although Value and Momentum scores are slightly lower, the overall outlook remains promising for ZTO Express.
ZTO Express (Cayman) Inc. stands out as a reputable express delivery company that offers nationwide services and value-added logistics solutions globally. With an emphasis on dividend distribution and growth opportunities, ZTO Express is positioned well for sustained success in the competitive market. Investors looking for a company with solid fundamentals and growth prospects may find ZTO Express Cayman an attractive long-term investment option.
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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