ZTO Express (02057.HK): Optimized cost structure while maintaining stable business growth

$ZTO EXPRESS-W(02057.HK) reported solid performance in the first quarter of 2026. During the period, the company achieved total revenue of RMB 13.282 billion, a year-on-year increase of 22.0%. In terms of profitability, adjusted net profit recorded RMB 2.377 billion, a year-on-year rise of 5.2%. Business scale continued to expand, with parcel volume in the first quarter reaching 9.668 billion pieces, a year-on-year growth of 13.2%.

Core express service revenue grew by 22.5% year-on-year, mainly benefiting from increased parcel volume and an 8.2% increase in average unit price. Among them, direct customer business revenue surged by 92.2% due to an increase in e-commerce return parcels. Cost control also saw significant results, with unit transportation cost successfully reduced by 9.8% thanks to economies of scale and efficient route planning.

Looking ahead, the company maintains its guidance for full-year 2026 parcel volume growth of 10% to 13% year-on-year, with an estimated total volume of 42.37 billion to 43.52 billion pieces. In summary, while optimizing its cost structure, the company has maintained steady business growth and possesses good long-term investment potential.

Source: KGI Securities