$ZTO

JPMorgan Downgrades ZTO Express to Neutral From Overweight, $29 Price Target

ZTO Express Q1 Adjusted Earnings, Revenue Rise

ZTO Express (ZTO) reported Q1 adjusted earnings late Tuesday of 2.95 Chinese renminbi ($0.43) per diluted American depositary share, up from 2.71 renminbi a year earlier.Analysts' estimates were not readily available for comparison.Revenue for the quarter ended March 31 was 13.28 billion renminbi, up from 10.89 billion renminbi a year earlier.Two analysts surveyed by FactSet expected 12.51 billion renminbi.Shares of the company were down over 5% in Wednesday's premarket activity.Price: $22.16, Change: $-1.39, Percent Change: -5.90%

Research Alert: Zto Q1: Accelerating Top-line And Improved Scale Economies Lift Profitability

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:ZTO posted a strong start to 2026, with revenues +22.0% Y/Y to CNY13.28B, as parcel volumes +13.2% to 9.7B units, outpacing the broader industry. Gross margins were flat at 24.4%, weighed by an 80.2% jump in network partner costs for key accounts, but partly offset by an 8.2% increase in core ASP from higher reverse-logistics volumes. However, adj-EBITDA rose by a more modest 6.9% Y/Y to CNY3.94B, due to lower other operating income. Improvements in core profitability for 2026 remains on track, aided by anti-involution policies and improving operating leverage; per-unit line-haul transportation costs -9.8% and sorting costs rose by just 6% amid rising economies of scale. Management kept full-year parcel volume growth guidance of 10%-13% (42.37B-43.52B parcels). We remain positive on its outlook, seeing potential for further upgrades depending on domestic consumption trajectory in 2H 2026, although a cautious near-term stance is warranted as irrational domestic competition could resurface and threaten margins.