According to the Smart Finance APP, ZTO Express-W (02057) rose more than 4%, at press time, up 4.17%, at HK$172.5, with a turnover of HK$37.057 million.

HTSC pointed out that in May, e-commerce GMV benefited from the 618 promotion ahead of schedule, with a year-on-year increase in growth rate, which led to an acceleration of year-on-year growth rate of parcel volume. However, there is still price competition in the express delivery industry, and the price decrease rate is expanding year on year. Looking forward to June, as the volume of parcels for year 23 is concentrated on June and the promotion for year 24 is advanced, the year-on-year growth rate of parcel volume may slow down, and the price competition may continue the May trend from slowing down to fluctuating. In the long term, the profit center of leading enterprises is expected to move up.

Guosen Securities previously pointed out that in the short and medium term, industry competition is expected to significantly slow down. One is that the capital expenditure of listed express delivery companies is declining, and the overall supply and demand structure of the industry tends to be balanced. Second, as ZTO Express insists on not doing "losing pieces" as a competition strategy, the price competition strategy of each express delivery company tends to be mild. Third, under the stable operation of various leading enterprises, the impact of actively expanding the price war will only do more harm than good.