Glonghui, March 25 | Bank of America Securities issued a report upgrading the rating of Zhongtong Express from “neutral” to “buy” to reflect improved shareholder return prospects. Management has guided a dividend payout ratio of 40% and an increase in the scale of repurchases. The two factors are equivalent to shareholder returns of about 8%, and the long-term holding value is reasonable. The bank believes that the current price competition will continue, and China Communications, as the market leader, does not seem to expand too aggressively. Management emphasized achieving a balance between delivery volume and service quality. We believe that the company has a good position and the average selling price will be stable next year. Its current price is equivalent to 12 times the projected price-earnings ratio for this year, which is close to its peers, but I believe the premium estimate is sufficient to guarantee it, raising its target price from $22 to $29.