HK Stock Market Move | ZTO EXPRESS-W (02057) rises more than 4%, Express delivery expected to benefit from the "anti-internal competition" trend, institutions say industry's fourth quarter profit performance is worth looking forward to.

ZTO EXPRESS-W (02057) rose more than 4%, as of the time of writing, it has increased by 4.48% to HK$149.2, with a turnover of HK$356 million. In terms of news, the State Post Bureau recently stated its opposition to "overwork" competition. Guosen believes that the express delivery industry is currently experiencing intense competition due to homogenization, and is in a stage of intensified low-price competition. In the future, under the guidance of policies promoting "anti-overwork" and high-quality development, it is expected that the disorderly competition in the express delivery industry will improve marginally, and the performance of prices and profits in the peak season of the fourth quarter is worth looking forward to. Changjiang believes that the current sector valuation and expectations are at low levels, and it is advisable to pay attention to the valuation repair opportunities brought about by the "anti-overwork" movement, as well as the potential performance elasticity brought about by future regional price adjustments.