ZTO Express "Go Home" Market Value Breaks 200 Billion Hong Kong Dollars

　　It closed up more than 9% on the first day of its secondary listing in Hong Kong, becoming the largest enterprise in the logistics sector of Hong Kong stocks by market capitalization, facing the industry price war problem

　　On September 29, ZTO Express officially landed on the Hong Kong Stock Exchange, and the opening rose nearly 12%.

ZTO Express became the first express company to be listed in the United States and Hong Kong at the same time, and it was also the company with the largest market value in the logistics sector of Hong Kong stocks.

　　In the opinion of experts, it is more important for ZTO Express to be internationalized to consolidate the listing of US stocks, but in the end, it chose to take advantage of the “return to Hong Kong” secondary listing that began in 2019, and one more trading scenario. Under the premise that the business model is verified and feasible, the company's valuation will naturally rise.

　　At present, the total market value of ZTO Express exceeds 200 billion Hong Kong dollars, which exceeds the total market value of other listed express companies except SF Express.

However, the front is not all smooth. The express delivery industry's volume and income structure is constantly expanding. Behind the serious homogeneity of express companies is the industry is facing low-quality and low-price competition.

　　Sit firmly in the top spot, raising approximately HK$9.6 billion

　　According to the announcement, ZTO Express plans to issue 45 million new Class A ordinary shares this time, with the final offer price of HK$218 per share.

Assuming that the over-allotment option is not exercised, it is estimated that the net proceeds from the global offering will be approximately HK$ 9.674 billion.

After listing in Hong Kong, the Class A ordinary shares of ZTO Express listed on the Hong Kong Stock Exchange will be fully convertible with the American depositary shares listed on the NYSE.

　　On October 27, 2016, Zhongtong shares were listed on the New York Stock Exchange, with a financing scale of US$1.45 billion.

At that time, many investment institutions were not optimistic about Zhongtong, believing that franchise enterprises did not have core competitive advantages.

However, during the 30 years of rapid development of my country's express delivery industry, the total volume of business has surged from 1.53 million in 1988 to 50.7 billion in 2018, with an average annual growth rate of 41.5%, and business volume has not fallen but increased.

In the meantime, Zhongtong took the top spot in the franchise express delivery system.

　　Since its establishment in 2002, ZTO Express has started to expand rapidly, with a market share of 19.1% in 2019. It is not only one of the youngest companies among large-scale express delivery companies in China, but also one of the express delivery companies with the highest market value in the Tongda department.

ZTO Express closed up more than 9% on the first day of its secondary listing in Hong Kong, and its market value exceeded HK$200 billion.

　　Affected by the epidemic, in the first quarter of 2020, ZTO Express revenue, operating costs and net income were 3.915 billion yuan, 3.097 billion yuan and 371 million yuan, respectively, down 14.4%, 6.6% and 45.6% from the same period in 2019.

Since March, the express delivery industry has gradually resumed operations.

In the second quarter, revenue, operating costs and net income increased by 18.0%, 26.8%, and 6.5% respectively over the same period in 2019.

　　The Tongda system is highly homogenized, and the price of a single express ticket is close to 2 yuan

　　According to ZTO Express’s announcement, as of the IPO, Alibaba held 8.7% of shares, ZTO’s directors and senior staff held a total of 42.7%, and other shareholders held 48.6%.

At present, the domestic top franchise express delivery system has all been classified as the Ali department in the industry. Alibaba's shares in the top express delivery company are: 33% of Best, 25% of Shentong, 22.5% of YTO, 8.7% of Zhongtong, and 2% of Yunda.

　　Tongda express delivery systems belong to the franchise system. The market shares, express delivery prices, and business models of all companies are close, and the homogeneity is serious. The industry behind this is facing low-quality and low-cost competition.

A-share listed express delivery company’s August business briefing showed that the single ticket revenue of Shentong express service was 2.11 yuan, a year-on-year decrease of 23.55%; the single ticket revenue of Yuantong express product was 2.11 yuan, a year-on-year decrease of 22.57%; the single ticket revenue of Yunda express service was 2.12 yuan, a year-on-year decrease A drop of 33.75%; SF Express, which has always had a high single ticket price, also fell 20.97% year-on-year, with express single ticket revenue of 17.11 yuan.

　　The economic performance of the postal industry in the first half of 2020 released by the State Post Bureau shows that the current amount of revenue structure has widened the scissors gap.

In the first half of 2020, the growth rate of express delivery business volume and revenue was 9.5 percentage points, and the volume growth rate was nearly twice the revenue growth rate.

Since March, the gap between volume and income growth has gradually widened, from 10.7 percentage points in March to 16.2 percentage points in May.

Express expert Zhao Xiaomin said that some express companies still hope to use price wars to leverage their own business growth, and are unwilling or have no greater initiative to expand their boundaries. Therefore, from the perspective of price wars, they must maintain at least one level. About years.

　　Beijing News reporter Cheng Zijiao