ZTO Express reports Q2 adjusted EPS 47c, consensus 45c

Reports Q2 revenue $1.48B, consensus $1.5B. Meisong Lai, Founder, Chairman and CEO of ZTO, commented, “For the Q2 this year, we continued to advance our re-balanced strategy that prioritizes quality over quantity by enhancing volume mix, improving operational efficiencies, helping to reduce last mile delivery costs, and increase profitability for outlets and couriers. With 8.5B parcels, our market share decreased 2.0 points to 19.6%, and our adjusted earnings increased 10.9% to 2.8B. We are on track to double the retail volume by the end of the year, aiming to gradually but steadfastly differentiate ourselves from the rest of the “Tongda” in brand recognition and customer satisfaction, and further our leadership in profitable growth.” Lai added, “China express delivery industry maintained relatively high growth, however, competition remained intense, the industry is under increased pressure. It is crucial for us to ensure fairness and maintain stability across the network. Our last-mile initiatives to drive up the ratio of retail parcel pickup to delivery will provide opportunities for franchise and couriers to earn more and ultimately provide greater pricing advantage for the front end in the long run.”