ZTO Stock Recent News

The surge in operating expenses does not bode well for ZTO. A weak liquidity position also hurts the company's prospects.

ZTO's first-quarter 2025 revenues benefit from growth in parcel volume.

ZTO Express (Cayman) Inc. (NYSE:ZTO ) Q1 2025 Results Conference Call May 20, 2025 8:30 PM ET Company Participants Sophie Li - Corporate Secretary and Director of Capital Markets Meisong Lai - Chairman and CEO Huiping Yan - CFO Conference Call Participants Ronald Keung - Goldman Sachs Qianlei Fan - Morgan Stanley Amy Han - Citigroup Operator Please note this event is being recorded. I would now like to turn the conference over to Sophie Li, Head of Capital Markets.

Parcels  Volume Increased 19.1%  to 8.5 Billion Adjusted Net Income Grew  1.6 % to RMB2.3 Billion Annual Volume Guidance Reiterated to Grow 20%-24% SHANGHAI , May 20, 2025 /PRNewswire/ -- ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK: 2057), a leading and fast-growing express delivery company in China ("ZTO" or the "Company"), today announced its unaudited financial results for the first quarter ended March 31, 2025[1]. The Company grew parcel volume by 19.1% year over year while maintaining high quality of service and customer satisfaction.

The trade war between the United States and China is expected to have an impact on ZTO's prospects in the to-be-reported quarter.

ZTO Express Cayman (ZTO) reported earnings 30 days ago. What's next for the stock?

ZTO Express' Q4 2024 results showed double-digit growth in revenue, gross profit, and adjusted net income, but parcel volume growth lagged behind the industry. Persistent strategic ambiguity and intense competition in China's express delivery market limit ZTO's potential for market re-rating, justifying a "hold" rating. Despite increasing ASP and higher margins, ZTO's market share declined, reflecting management's struggle to balance profitability and volume growth.

The surge in operating expenses does not bode well for ZTO. A weakening liquidity position also hurts the company's prospects.

I maintain a Hold rating for ZTO Express, following an evaluation of its outlook for the short term and long run. ZTOEF's ambitious volume growth target will likely be a drag on its '25 margins. In the mid-to-long term, the company might witness share gains and higher prices if insurance coverage for couriers becomes a requirement in China.

ZTO Express (Cayman) Inc. (NYSE:ZTO ) Q4 2024 Results Conference Call March 18, 2025 8:30 PM ET Company Participants Sophie Li - Corporate Secretary and Director of Capital Markets Meisong Lai - Chairman and CEO Huiping Yan - CFO Conference Call Participants Ronald Keung - Goldman Sachs Qianlei Fan - Morgan Stanley Aaron Luo - UBS Operator Good day, and welcome to the ZTO Express Fourth Quarter and Full Year 2024 Financial Results Conference Call. [Operator Instructions] Please also note today's event is being recorded.