Overview

* ZTO Q3 revenue increases 11.1% yr/yr to RMB11.9 bln

* Adjusted net income rises 5% to RMB2.5 bln

* Parcel volume grows 9.8% to 9.6 bln

Outlook

* Company revises 2025 parcel volume guidance to 38.2-38.7 bln, up 12.3%-13.8% YoY

* ZTO cites macro environment changes for adjusting parcel volume guidance

Result Drivers

* RETAIL VOLUME GROWTH - Strong retail volume momentum contributed positively to margins

* TRANSPORTATION COST PRODUCTIVITY - Improved load rate and economies of scale reduced unit transportation costs

* FOCUS ON QUALITY - ZTO emphasizes quality and market presence amid macro uncertainties

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 RMB

Revenue 11.86

bln

Q3 RMB 2.50

Adjusted bln

Net

Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the courier, postal, air freight & land-based logistics peer group is "buy"

* Wall Street's median 12-month price target for ZTO Express (Cayman) Inc ( ZTO ) is $23.10, about 17.9% above its November 19 closing price of $18.97

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)