ZTO EXPRESS Reports 13.7% Year-Over-Year Increase in Q1 Revenue for FY2023
May 25, 2023
Earnings Overview
On May 18, 2023, ZTO EXPRESS ($BER:ZTOA) reported their earnings results for FY2023 Q1, with total revenue amounting to CNY 8983.2 million and a 13.7% year-on-year increase. Additionally, net income for the first quarter was CNY 1670.3 million, displaying an 84.3% rise compared to the same period in the previous year.
Analysis
GoodWhale has conducted an analysis of the fundamentals of ZTO EXPRESS and found that it has strong growth, profitability, and medium asset and dividend ratings. Its health score of 9/10 with regards to its cashflows and debt indicates that the company is capable of paying off debt and fund future operations. Additionally, ZTO EXPRESS is classified as a ‘gorilla’, a company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Given these findings, the type of investor that may be interested in this company includes those who are looking for a steady and rewarding return on their investments. These investors will benefit from the consistent cashflows, and the potential for increased earnings as the business grows. This company is also attractive to those looking for a more long-term investment, as its strong competitive positioning in the industry gives it some insulation against any short-term market fluctuations. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Zto Express. More…
| Total Revenues | Net Income | Net Margin |
| 36.46k | 7.57k | 19.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Zto Express. More…
| Operations | Investing | Financing |
| 13.11k | -18.59k | 5.32k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Zto Express. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 80.7k | 26.69k | 65.8 |
Key Ratios Snapshot
Some of the financial key ratios for Zto Express are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.3% | 19.1% | 25.9% |
| FCF Margin | ROE | ROA |
| 15.6% | 11.0% | 7.3% |
Summary
ZTO EXPRESS saw strong earnings growth in Q1 2023, with total revenue increasing 13.7% year-over-year to CNY 8983.2 million and net income growing 84.3% to CNY 1670.3 million. This suggests that ZTO EXPRESS remains a strong investment option for investors, with a viable growth potential and strong fundamentals to support its expansion. Investors looking for a reliable Chinese logistics and delivery company should consider ZTO EXPRESS as a promising option.
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