ZTO Express falls 10% despite earnings beat

ZTO Express (ZTO) reported Non-GAAP EPS of $0.34 beats consensus by 1 cent.

Revenue breakdown: Express delivery services generate 91.4% of revenue at $1.32B, Freight forwarding 59.3M, Sale of accessories $55.3M.

Parcel volume was 6,343 million, an increase of 17.2% from 5,410 million in the same period of 2020.

Number of pickup/delivery outlets was over 30,400 as of December 31, 2021.

Number of direct network partners was over 5,700 as of December 31, 2021.

Number of line-haul vehicles was approximately 10,900 as of December 31, 2021, which were self-owned vehicles.

Out of the approximately 10,900 self-owned trucks, over 9,000 were high capacity 15 to 17-meter-long models as of December 31, 2021, compared to approximately 7,900 as of September 30, 2021.

Number of line-haul routes between sorting hubs was approximately 3,700 as of December 31, 2021, compared to over 3,600 as of September 30, 2021.

Number of sorting hubs was 99 as of December 31, 2021, among which 88 are operated by the Company and 11 by the Company’s network partners.

Adjusted EBITDA was RMB2,739.2 million (US$429.8 million), an increase of 29.3% Y/Y.

The board has approved a special dividend of US$0.25 per ADS.

The parcel volume grew 5.3 billion or 31.1% to reach 22.3 billion, with which, we maintained our number one position in market share at 20.6%.

FY22 Outlook: Based on current market conditions and current operations, the Company’s parcel volume for 2022 is expected to be in the range of 26.30 billion to 27.64 billion, representing an 18% to 24% increase year over year.