Hong Kong stocks concept tracking| China's express delivery industry continues to develop well. The express delivery sector is currently still in the undervalued range (with concept stocks attached).

According to data from the State Post Bureau, the express delivery development index of China in December 2024 was calculated to be 469.8, an increase of 17.2% compared to the previous year. The development scale index, service quality index, and development capacity index were 636.2, 649.4, and 256.6 respectively, with year-on-year increases of 28.4%, 15.6%, and 1.2%. The development trend index was 71.1. In December, the express delivery industry continued to develop well, with a rapid increase in market size, improved service quality, strong expansion in the international market, and exceeded expectations in achieving the development goals for 2024. In 2024, the express delivery industry maintained high-level operations, benefiting from changes in demand. Excluding adjustments in the statistical standards of the State Post Bureau, the industry's volume growth rate remained significantly higher than that of social retail sales and online physical goods retail sales, and also higher than the generally expected rate of listed companies at the beginning of the year, demonstrating strong and resilient demand growth. On the pricing front, the trend towards lighter and smaller items in express delivery has had a certain impact on the industry's single ticket revenue. At the same time, as leading companies adjust their competitive strategies and emphasize market share demands, there is a trend of intensifying price competition in the express delivery industry. Considering the constraints on long-term high-quality development guided by policies, the intensity of the "price war" can be controlled, and companies may not execute a strategy of trading price for volume in the long term. The possibility of a return to the vicious "price war" seen around 2020 is small, and the market share of leading companies may further increase. According to a research report by Minsheng Securities, the express delivery sector is currently in a low valuation range, with the continuous growth of the e-commerce market, combined with new demands such as sinking markets and reverse logistics, which are expected to drive performance elasticity after the economic recovery in 2025. Hong Kong-listed companies related to the express delivery industry include: ZTO EXPRESS-W(02057), YTO INTL EXP(06123), JITU EXPRESS(01519), SF INTRA-CITY(09699), S.F. Holding(06936), etc.