ZTO: Parcel Volume Y/Y Growth Offsetting Decline In Revenue Per Parcel; Expect Better 3Q20 Revenue
ZTO will report 3Q20 results on November 18th after the markets close followed by an 8pm EST conference call. The express sector in China is undergoing an intensified price competition. Several top vendors are all public listed companies with enough capital on their balance sheets. It is hard to project when the competition will end. However, we believe ZTO will be one of the last standing winners since it has higher margin profit and richer capital than others. Based on our data and model, ZTO revenue is likely be at least in line with consensus at RMB 6,252M (18.7% Y/Y growth).