China's ZTO Express Q2 profit up 50% on operational efficiency

ZTO Express (Cayman)

18/08/2026 23:13

Overview
China express delivery firm's Q2 revenue rose 23% yr/yr, adjusted net income up 50.3%
Parcel volume grew 6.5% to 10.5 bln, outpacing industry average
Company updated 2026 parcel volume growth guidance to 6-10% yr/yr

Outlook
ZTO expects 2026 parcel volume to rise 6-10% year over year
Company revised parcel-volume growth guidance downward due to slowing industry growth
ZTO cites subdued growth environment and evolving market dynamics in outlook

Result Drivers
KEY ACCOUNT GROWTH - Revenue from key account customers, including e-commerce return parcels, increased 63.6%, supporting overall revenue growth
HIGHER PARCEL PRICING - Average selling price per parcel rose 15.5% yr/yr, driven by improved revenue mix and higher-value volumes
OPERATIONAL EFFICIENCY - Combined unit sorting and transportation costs decreased, aided by digitization and lean operations, despite oil price volatility

Company press release: ID:nPn6y18a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
RMB 14.55 bln
 
Q2 Adjusted EARNINGS PER ADS Attributable 
 
RMB 3.79
 
Q2 Adjusted Net Income
 
RMB 3.10 bln
 

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 $29.35, about 26.9% above its August 18 closing price of $23.13
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

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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.)