Sinolink Securities: Profitability in the Chinese express delivery industry is improving. Prices may rise during peak seasons.

CITIC Lyon released a research report stating that the number of deliveries in the Chinese courier industry increased by 20% year-on-year in August. Yunda Express continues to expand its market share, and prices are trending well by season. Due to policy support, courier operators are nearly operating at full capacity, with network partners increasingly focused on profitability. It is expected that in some regions during the peak season this year, prices will see a meaningful increase. Historically, price increases have been in the range of 0.1-0.2 RMB, with some areas like Yiwu and Chaoshan already raising prices. The bank is optimistic about STO Express Co., Ltd. and Yunda Express, while the number of ZTO EXPRESS-W (02057) is also recovering.