Company Reports

STO Express' parcel volume grew 15.8% year over year in the first half of 2026, outpacing the industry's 5%, supported by the Danniao acquisition. Unit express revenue rose 12.1%, faster than 10% in unit express costs. Unit core EBIT grew 82%, driven by industrywide price hikes in economy express.

The six largest privately owned express delivery companies accounted for around 82% of China’s parcel deliveries by volume in the third quarter of 2024, based on data from the companies and China’s State Post Bureau. With their share already high, we think further gains from smaller players are limited for these large companies.

Yunda and STO Express released their preliminary earnings. Yunda expects core net profit for the first half of 2026 to increase 84.5%-116.5%, while STO Express expects an increase of 117.7%-143.0%.

STO Express' first-quarter core EBIT surged 91% year on year, outperforming Yunda's 39% and YTO Express' 59%, mainly supported by a government-led, nationwide price hike. Revenue grew 31% on a 14% rise in parcel volume. STO's first-quarter parcel volume share rose to 13.9% from 13.5% sequentially.

The six largest privately owned express delivery companies accounted for around 82% of China’s parcel deliveries by volume in the third quarter of 2024, based on data from the companies and China’s State Post Bureau. With their share already high, we think further gains from smaller players are limited for these large companies.

Among the A‑share express operators that have released fourth‑quarter data, year‑on‑year revenue growth ranged from 0% to 24%. Average selling price improvement was partially offset by a slowdown in industry parcel volume growth to 5.0% year on year, from 13.3% in the prior quarter.

STO Express' third-quarter revenue and recurring EBIT were up 14% and 48% year on year, respectively, thanks to a 75-basis-point gross margin expansion, 11% growth in parcel volume, and 2% increase in unit revenue.

The six largest privately owned express delivery companies accounted for around 82% of China’s parcel deliveries by volume in the third quarter of 2024, based on data from the companies and China’s State Post Bureau. With their share already high, we think further gains from smaller players are limited for these large companies.

YTO Express and STO Express saw core EBIT fall 13% and 10% year over year in the second quarter, respectively, despite parcel volume growth of 22% and 16%. Several couriers raised prices in China's main production provinces of Guangdong and Zhejiang.

The six largest privately owned express delivery companies accounted for around 82% of China’s parcel deliveries by volume in the third quarter of 2024, based on data from the companies and China’s State Post Bureau. With their share already high, we think further gains from smaller players are limited for these large companies.

STO Express' 2024 recurring EBIT was up 212%, thanks to a 1.8-percentage-point increase in gross margin. First-quarter revenue and EBIT were up 18% and 25% year on year, respectively, driven by 27% growth in parcel volume and a higher operating margin offsetting a lower gross margin.

The six largest privately owned express delivery companies accounted for around 82% of China’s parcel deliveries by volume in the third quarter of 2024, based on data from the companies and China’s State Post Bureau. With their share already high, we think further gains from smaller players are limited for these large companies.

The six largest privately owned express delivery companies accounted for around 82% of China’s parcel deliveries by volume in the third quarter of 2024, based on data from the companies and China’s State Post Bureau. With their share already high, we think further gains from smaller players are limited for these large companies.

STO Express reported preliminary 2024 results, with express revenue growing 19% year on year, while net profit increased by 179% to 208%.

The six largest privately owned express delivery companies accounted for around 82% of China’s parcel deliveries by volume in the third quarter of 2024, based on data from the companies and China’s State Post Bureau. With share already high, we think further volume share gain from smaller players is limited for these large companies.

We raised the fair value estimate of no-moat STO Express, or STO, by 26% to CNY 12.70 per share due to better-than-expected market share, less-than-expected unit revenue reduction, and strong cost savings in the third quarter. STO’s shares remain fairly valued, in our view.

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.

While STO Express’ first-half revenue tracked our full-year estimate, core operating profit was substantially above our estimate, thanks to strong cost optimization. We raised STO’s fair value estimate by 10% to CNY 10.10 per share as we expect stronger cost-saving efforts in the long term. However, we think STO’s shares are fairly valued currently as we still expect intense competition in the sector to drive its estimated core operating margin down to 1.5% by 2028 from 2.5% in 2024.

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.

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.