Overview

• China express delivery firm's Q4 revenue rose 12.3% yr/yr on higher parcel volume and prices

• Q4 adjusted net income fell 1.4% yr/yr

• Company announced US$1.5 bln new share repurchase program

• ZTO announced US$0.39 per share emi-annual dividend

Outlook

• ZTO expects 2026 parcel volume to rise 10%-13% to 42.37-43.52 bln parcels

• Company says near-term macro environment and micro conditions may be extremely volatile

Result Drivers

• PARCEL VOLUME AND PRICING - Revenue growth was driven by a 9.2% increase in parcel volume and a 2.9% rise in parcel unit price, with key account revenue up 71.5% mainly due to more e-commerce return parcels

• COST PRESSURES - Gross margin declined as total cost of revenues rose 18.2%

Company press release: ID:nPn6qk50ta

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 2 "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 is $25.00, about 5.4% above its March 17 closing price of $23.73

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)