The Zhitong Finance App learned that benefiting from the advance of e-commerce “Double Eleven” this year, a number of listed express delivery companies achieved year-on-year growth in express delivery business revenue in October. The business revenue of Yuantong Express, Shentong Express, Yunda Co., Ltd., and SF Holdings increased by 26.94%, 24.86%, 16.58%, and 16.16%, respectively. Looking at the industry as a whole, the “Double 11" e-commerce promotion has come to an end, and the volume of the industry is showing a relatively rapid growth trend. The express delivery business has entered a peak season throughout the year, and the performance of express delivery companies in the fourth quarter is worth looking forward to. Related targets: Zhongtong Express (02057), Yuantong International Express (06123), Jitu Express (01519), SF Tongcheng (09699).

Specifically, on November 19, Yuantong Express announced the main operating data of the express delivery business for October 2024. Express delivery product revenue was 5.704 billion yuan, up 26.94% year on year; business completion volume was 2.473 billion tickets, up 31.18% year on year; single ticket revenue from express delivery products was 2.31 yuan, down 3.23% year on year.

According to Shentong Express's announcement, the company's express delivery service revenue in October 2024 was 4.426 billion yuan, up 24.86% year on year; completed business volume 2.186 billion tickets, up 30.35% year on year; and express delivery service single ticket revenue was 2.03 yuan, down 3.79% year on year.

According to the announcement of Yunda Co., Ltd., the company's express delivery service business revenue in October 2024 was 4.535 billion yuan, up 16.58% year on year; completed 2.25 billion tickets, up 31.81% year on year; and express delivery service single ticket revenue was 2.02 yuan, down 11.40% year on year.

On November 18, SF Holdings announced that in October 2024, the total revenue from the company's express logistics business and supply chain and international business was 24.096 billion yuan, an increase of 16.16% over the previous year.

Furthermore, Jitu Express released the Double 11 Report on November 14. The data showed that the number of packages ordered worldwide exceeded 0.1 billion in a single day on November 12.

The annual “Double 11" e-commerce promotion has come to an end, and the express delivery business has entered the peak season throughout the year. According to data from the State Post Office, from October 21 to November 10, the country's express delivery volume was about 12.082 billion items, up 21.4% year on year, and the cumulative delivery volume was about 12.124 billion units, up about 25.3% year on year; the average daily business volume exceeded 0.55 billion units, of which the highest daily processing volume reached 0.729 billion units, an increase of 74% year on year, setting a new single-day business volume record.

A relevant person in charge of the State Post Office said that since this year, China's annual express delivery business volume has exceeded 150 billion units for the first time. The continuous expansion of the express delivery market is driven by favorable macroeconomic policies. Multiple departments and regions issued support policies to promote consumption and expand domestic demand, using large-scale equipment updates and consumer goods trade-in actions as an opportunity to continuously enrich consumption scenarios, open up a sinking market, consolidate the current continuous positive development trend, and drive strong growth in express delivery business volume.

At the same time, thanks to increasingly improved top-level design, efficient and accessible service networks, and the widespread application of intelligent technology, express delivery companies continue to improve infrastructure construction and actively deploy advanced technical equipment such as unmanned vehicles, drones, and intelligent sorting. The industry's transportation capacity is increasing, the network system is gradually being improved, and service efficiency and quality have also been effectively improved.

Furthermore, according to estimates by the State Post Office, China's express delivery development index for October 2024 was 464.4, an increase of 21.1% over the previous year. Among them, the development scale index, service quality index, development capacity index and development trend index were 583.7, 703.8, 236.6, and 72.1, respectively, up 31.1%, 20.9%, 3.7%, and 6%, respectively, from the previous year. In October, the industry entered the peak business season. The business growth rate accelerated markedly, delivery networks operated efficiently, industrial collaboration continued to deepen, and cross-border service capabilities improved.

Everbright Securities pointed out that in terms of price, since September, express delivery “grain-producing zone” franchisees have increased prices by varying degrees for different customers in Yiwu, Chaoshan, Shenzhen-Guan and other regions. The express delivery business has picked up, and competition in the industry is expected to slow down in the short term.

Societe Generale Securities said that despite the twists and turns in the company's cost-side operation changes, SF Express will still achieve cost reduction and efficiency gains. In terms of e-commerce express delivery, attention should be paid to the current comparative value of the industry. Industry demand is good, performance growth is good, valuation is low, and there is room for improvement in performance and valuation. In the medium to long term, it is recommended to downplay the evolutionary path of the industry and focus on the industrial value of the express delivery sector. Express delivery has strong positive externalities. The ratio between express delivery costs and e-commerce customer unit price is far lower than the contribution of express delivery to the online retail supply chain. It is expected that the value of the express delivery industry will continue to strengthen.

Related concept stocks:

Zhongtong Express (02057): On November 20, Zhongtong Express announced its results for the third quarter of 2024, with revenue of 10.675 billion yuan, up 17.62% year on year; net profit of 2.379 billion yuan, up 1.25% year on year; net profit attributable to Zhongtong Express (Cayman) Co., Ltd. was 2.396 billion yuan, up 2.18% year on year.

Yuantong International Express (06123): On November 19, Yuantong Express announced the main operating data of the express delivery business for October 2024. Express delivery product revenue was 5.704 billion yuan, up 26.94% year on year; business completion volume was 2.473 billion tickets, up 31.18% year on year; single ticket revenue from express delivery products was 2.31 yuan, down 3.23% year on year.

Jitu Express (01519): On November 14, Jitu Express released the Double 11 Battle Report. The data showed that the number of packages ordered worldwide exceeded 0.1 billion in a single day on November 12.

SF Express Tongcheng (09699): On November 18, SF Holdings announced that the total revenue from the company's express logistics business and supply chain and international business in October 2024 was 24.096 billion yuan, an increase of 16.16% over the previous year.