Logistics Sector Rises

This morning, the logistics sector rose, with stocks such as Huapeng Fei, STO Express, and Yunda Holdings surging. STO Express has been on a continuous upward trend, with a cumulative increase of over 52% since its rebound on July 10.

From an industry perspective, the following developments are noteworthy:

First, on July 29, the State Post Bureau held a symposium with express delivery companies to discuss regulating "involution-style" competition in the industry in accordance with laws and regulations, addressing prominent issues such as illegal fees for rural parcel pickups, and promoting high-quality industry development.

Second, the domestic express delivery industry is further accelerating consolidation. On the evening of July 25, STO Express announced that its wholly-owned subsidiary plans to acquire 100% of Zhejiang Daniao Logistics for 362 million yuan in cash. Public records show that Daniao Logistics was established by Cainiao in 2019 and operates Cainiao Express, one of Cainiao's businesses. It provides services such as door-to-door pickup, transit delivery, and return logistics for platforms like Tmall, Tmall Supermarket, and Taobao through its nationwide self-operated network. Currently, the company serves approximately 300 cities across China, with average daily orders exceeding 4 million in 2024 and from January to April 2025.

Third, unmanned logistics vehicles have entered the large-scale commercial phase this year, with the "last mile" of delivery becoming the first application scenario. Institutions estimate that SF Express and ZTO Express, as industry leaders, are expected to introduce thousands of unmanned logistics vehicles each this year, compared to hundreds last year, indicating a significant expansion trend. Express companies are further reducing costs: based on the operational performance of outlets using such vehicles, Tongda-affiliated outlets can save about 0.1 yuan per parcel, while SF Express can save around 2,000 yuan per vehicle per month.

Guolian Minsheng Securities stated that the overall intensity of competition in the express delivery industry is expected to remain manageable, and price declines during the off-season may stabilize. With sector valuations currently at historically low levels and a sufficient margin of safety, investment opportunities in the sector are worth noting.