HK Stock Market Move | Zhongtong Express (02057) rises more than 4%, with industry performance elasticity fully demonstrated amid anti-overwork trend. JP Morgan previously raised the company's target price.

Zhongtong Express (02057) rose by more than 4%, up 4% to HK$205.2 at the time of publication, with a turnover of HK$167 million. On the news front, Morgan Stanley recently raised its target price for Zhongtong Express from HK$197 to HK$225, with a "hold" rating, and introduced forecasts for 2028, expecting a compound annual growth rate of 13% in earnings per share during the forecast period. The bank stated that anti-"involution" policies are reducing price competition, allowing Zhongtong to improve efficiency, invest in technology, and raise entry barriers for the industry. Zhongtong's 2026 business volume growth guidance is 10% to 13%, higher than the industry's forecast of 8%, benefiting from increased market share, a more rational pricing environment, and profit margin expansion. Cathay Haitong stated that the intensity and continuity of the industry's "anti-involution" efforts in 2026 are expected to exceed expectations, effectively alleviating industry competition pressure, gradually leading to a recovery in industry price levels, and continuous restoration of profitability. Amid the trend of slowing industry growth caused by high costs in e-commerce operations and a mild winter, there is optimism for continued optimization of business structure, building differentiated competitive barriers, and rapid growth in overseas operations for the leading express delivery companies.