JP Morgan: ZTO EXPRESS-W(02057) benefits from favorable policies, raises target price to HK$197, maintains "overweight" rating.

JPMorgan released a research report stating that ZTO EXPRESS-W (02057) will continue to be the preferred stock in the transportation industry in the next 3 to 6 months. The company's H-share target price has been raised from 187 Hong Kong dollars to 197 Hong Kong dollars, with a "hold" rating. The bank also raised the target price of ZTO Express (Cayman), Inc. Sponsored ADR Class A (ZTO.US) from $24 to $25, with a "hold" rating. JP Morgan cited the latest comments from the management of ZTO Express (Cayman), Inc. Sponsored ADR Class A, stating that anti-internal competition policies are fundamentally reshaping the competitive landscape, shifting the industry from a growth model based on quantity to one focused more on quality and profitability. JP Morgan believes that ZTO Express (Cayman), Inc. Sponsored ADR Class A is clearly benefiting from current industry developments, not only continuing to expand market share but also demonstrating robust profit performance.