STO Express Co Ltd Class A
002468: XSHE (CHN)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| CNY 3.30 | Ybfp | Nmsmq |
We Initiate Coverage on No-Moat STO Express With a Fair Value Estimate of CNY 9.60
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Business Strategy and Outlook
The network partner model-based companies in China have gained parcel volume share from direct operation-based companies, with share rising to 76% in 2022 from 66% in 2011. The six largest express delivery companies controlled around 86% of China’s parcel deliveries by volume in 2022, based on data from the companies and China’s State Post Bureau. With share already high, we think further volume share gain is limited for the network partner model-based companies.