CITIC Securities: Supply and demand turning point has appeared, focus on the opportunity for both volume and profit growth in the express delivery industry.

The CITIC construction investment research report stated that the long-term investment logic of the express delivery industry has changed. It will shift from the previous logic of "cost reduction price reduction sacrificing profit for market share" to the logic of "increasing volume while maintaining profit" and "optimizing industry structure". Top express delivery companies can achieve market share growth by reducing costs across the entire supply chain and narrowing price differentials at the tail end, within the regulatory framework of "anti-inner circle pricing". This year marks a turning point for supply and demand in the express delivery industry, with the sector experiencing a historic market boom after years of competition. With the release of annual and quarterly reports, this prediction is gradually coming true. On the demand side, in the context of "anti-inner circle pricing", the growth rate of package volume in the express delivery industry has slowed down due to factors such as e-commerce taxes and investment flow taxes. On the supply side, there is differentiation in production capacity and overall profitability in the industry is being restored.