Notable News to Watch: ZTO Express (Cayman) Inc. (NYSE:ZTO)

ZTO Express (Cayman) Inc. (NYSE:ZTO), spotted trading -5.91% off 52-week high price. On the other end, the stock has been noted 37.57% away from the low price over the last 52-weeks. The stock changed 1.22% to recent value of $19.94. The stock transacted 3593245 shares during most recent day however it has an average volume of 2560.62K shares. The company has 788.37M of outstanding shares and 548.95M shares were floated in the market.  

On Aug. 15, 2019, ZTO Express (Cayman) Inc. (NYSE:ZTO) a leading and fast-growing express delivery company in China (ZTO or the Company), reported its unaudited financial results for the second quarter ended June 30, 2019[1]. The Company beat market expectations by generating parcel volume growth of 46.8%, 18.5 percentage points higher than the industry average. Market share in terms of parcel volume expanded to 19.9% during the second quarter of 2019. Adjusted net income increased 25.6% to reach RMB1, 375.9 million.

Second Quarter 2019 Financial Highlights

  • Revenues were RMB5, 423.6 million (US$790.0 million), an increase of 29.2% from RMB4, 197.9 million in the same period of 2018
  • Gross profit was RMB1, 768.6 million (US$257.6 million), an increase of 21.4% from RMB1, 457.3 million in the same period of 2018
  • Net income was RMB 1,365.1 million (US$198.8 million), a decrease of 8.5% from RMB 1,492.2 million in the same period of 2018
  • Adjusted EBITDA [2] was RMB1, 962.8 million (US$285.9 million), an increase of 29.1% from RMB1, 520.2 million in the same period of 2018
  • Adjusted net income [3] was RMB 1,375.9 million (US$200.4 million), an increase of 25.6% from RMB1, 095.7 million in the same period of 2018
  • Basic and diluted earnings per American depositary share (ADS [4]) attributable to ordinary shareholders were RMB1.73 (US$0.25), a decrease of 16.4% from RMB2.07 in the same period of 2018
  • Adjusted basic and diluted earnings per American depositary share [5] attributable to ordinary shareholders were RMB1.74 (US$0.25), an increase of 14.5% from RMB1.52 in the same period of 2018
  • Net cash provided by operating activities was RMB1, 992.8 million (US$290.3 million), compared with RMB1, 475.8 million in the same period of 2018
  • Operational Highlights for Second quarter 2019
  • Parcel volume was 3,106.6 million, an increase of 46.8% from 2,115.6 million in the same period of 2018
  • Number of pickup/delivery outlets was approximately 30,000 as of June 30, 2019, while the number of direct network partners was approximately 4,650 as of June 30, 2019
  • Number of line-haul vehicles was over 5,800 as of June 30, 2019, which included over 4,950 self-owned vehicles and over 850 vehicles owned and operated by Tonglu Tongze Logistics Ltd., a transportation operator that works exclusively for ZTO. Among the 4,950 self-owned vehicles, over 3,150 were high capacity 15-to-17-meter-long trailer trucks compared to over 3,000 as of March 31, 2019
  • Number of line-haul routes between sorting hubs was over 2,200 as of June 30, 2019
  • Number of sorting hubs was 87 as of June 30, 2019, among which 78 are operated by the Company and the other nine by the Company’s network partners

 Its earnings per share (EPS) expected to touch remained 32.30% for this year while earning per share for the next 5-years is expected to reach at 2.96%. ZTO has a gross margin of 30.00% and an operating margin of 23.60% while its profit margin remained 24.20% for the last 12 months. 

 According to the most recent quarter its current ratio was 3.6 that represents company’s ability to meet its current financial obligations. The price moved ahead of 1.23% from the mean of 20 days, 5.52% from mean of 50 days SMA and performed 11.74% from mean of 200 days price. Company’s performance for the week was 1.22%, 3.85% for month and YTD performance remained 27.67%.

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