IMO Growth for ZTO is pretty much a given with access to the Belt and Road Initiative (once referred to as the “New Silk Road”).
In addition according to Sena, "China represents a larger ecommerce market than in the U.S. (at roughly 2x the scale and growing nearly twice as fast), but there is also opportunity for ecommerce platforms to play an even greater role in physical commerce, manufacturing, and grocery, all areas where Alibaba holds strong and growing position.”
No. 1 Logistics Firm, Backed By Alibaba, Jumps Late After Earnings Beat
APARNA NARAYANAN8/08/2018
Leading China delivery company ZTO Express (ZTO), a logistics play on China's e-commerce boom, easily topped earnings estimates after the close Wednesday as parcel volumes surged.
The Alibaba (BABA)-backed firm covers 96% of China's cities and counties. The Chinese e-commerce giant and its logistics arm Cainiao are investing $1.38 billion in ZTO.
Estimates: EPS is seen climbing 53% to 23 cents, according to one analyst surveyed by Zacks Investment Research. There was no revenue estimate but ZTO saw $438 million in sales a year ago.
Results: EPS of 31 cents on revenue of $634.4 million, an increase of 41%. Short-term delivery service revenue was $553.8 million. Parcel volume jumped 41.7% to 2.116 billion.
"We remain optimistic on the growth potential for China's express delivery industry over the next two to three years," Chairman and CEO Meisong Lai said in a statement.
"Short-term market conditions could remain competitive. However, our competitive advantage in scale and operational efficiency, superior earnings quality and stability of our partner network will ensure ZTO's sustainable growth and long-term leadership."