Chinese express delivery firms rally on strong earnings in June amid market recovery
Chinese express delivery firms rally on strong earnings in June amid market recovery

Chinese express delivery firms rally on strong earnings in June amid market recovery

 

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Chinese express delivery companies stage a rally on strong earnings in June amid market recovery. An index tracking mainland-listed express delivery firms, compiled by Wind Information, is surging 4.6% as of 11:05 am, local time, making it one of the best-performing sectors in the A-share market, compared to 0.1% loss for the benchmark Shanghai Composite Index.

Shares of STO Express surge by the daily limit of 10% in Shenzhen, Yunda Holdings surging by 9.7%, SF Holdings up 4.6% and YTO Express jumping 4.5%.

SF Holdings said its revenue reached 16.1 billion yuan in June, rising 11.16% from a year earlier. The company’s revenue from supply chain and international business skyrocketed by 486% year over year to 10.57 billion yuan, it said.

Yunda Holdings said its express delivery revenue reached 4.14 billion yuan last month, rising 25.11% from a year earlier. YTO Express said its express delivery revenue totaled 4.11 billion yuan in June, an increase of 31.57% from a year earlier. STO Express said its express delivery revenue reached 2.98 billion yuan in June, surging 55.09% from a year ago.

Essence Securities said in a note that China’s express delivery industry is expected to maintain the recovering momentum in the short term and the prices will remain stable in a traditional light season.

SF Holdings’ earnings are expected to improve further as its short-term correction is largely over and due to the company’s strict cost controls and diversified business layout, said according to the note.

Profits per parcel at Yunda, YTO and STO remained at high levels and further improvement is expected as market demand recover, it said.