CLSA's analyst rating for ZTO EXPRESS-W is based on the positive results from the 'anti-involution' measures in China's express delivery industry, which have led to a 14% growth in business volume and an estimated net profit of around RMB2.3 billion in the first quarter. The firm expects ZTO to regain market share by 2026 while maintaining stable profitability, making its current valuation attractive at about 10x forecast PE for FY2026. CLSA maintains an Outperform rating with a target price of HKD216.
