External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>ZTO’s reported/core net profit was +5%/-3% in 3Q25, which is largely in-line with our expectation.</li><li>ZTO revised down the parcel volume growth guidance for the full year (12.3-13.8%, vs. 14-18% in Aug).</li><li>This is the second downward revision this year, which we believe is a continuous reaction to the antiinvolution campaign. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ZTO’s reported/core net profit was +5%/-3% in 3Q25, which is largely in-line with our expectation.ZTO revised down the parcel volume growth guidance for the full year (12.3-13.8%, vs. 14-18% in Aug).This is the second downward revision this year, which we believe is a continuous reaction to the antiinvolution campaign. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ZTO Express (ZTO US/2057 HK) - 3Q25 Results In-Line; Expect Further Improvement in ASP

Thematic (Sector/Industry)

<ul><li>We believe the Chinese government’s aspiration to promote “anti-involution”, followed by the meeting held by the State Post Bureau with express delivery operators as well as the comments by NDRC last week to propose a revision of the price law, will serve as a positive catalyst for the express delivery sector over the coming 3-6 months.</li><li>We see chances for a moderate parcel ASP hike going forward, though not as strong as the uptrend in 2022 after the government’s intervention.</li><li>Government actions to curb price war. On 29 Jul, the State Post Bureau held a meeting with major express delivery operators to address the "involution" competition in the industry.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We believe the Chinese government’s aspiration to promote “anti-involution”, followed by the meeting held by the State Post Bureau with express delivery operators as well as the comments by NDRC last week to propose a revision of the price law, will serve as a positive catalyst for the express delivery sector over the coming 3-6 months.We see chances for a moderate parcel ASP hike going forward, though not as strong as the uptrend in 2022 after the government’s intervention.Government actions to curb price war. On 29 Jul, the State Post Bureau held a meeting with major express delivery operators to address the "involution" competition in the industry.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Logistics - Strong Policy Momentum to Curb Price War; a Similar Price Hike Story like 2022

<ul><li>ZTO Express (ZTO)’s core net profit in 2023 came in at RMB8.5bn (up 28% YoY), in line with our expectation.</li><li>Looking forward, ZTO targets to achieve 15- 18% parcel volume growth in 2024E, versus estimated industry growth of ~10%.</li><li>More importantly, ZTO set a dividend payout target of 40% starting from 2024E and dividend will be paid on a semi-annual basis. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ZTO Express (ZTO)’s core net profit in 2023 came in at RMB8.5bn (up 28% YoY), in line with our expectation.Looking forward, ZTO targets to achieve 15- 18% parcel volume growth in 2024E, versus estimated industry growth of ~10%.More importantly, ZTO set a dividend payout target of 40% starting from 2024E and dividend will be paid on a semi-annual basis. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ZTO Express (2057 HK) - Higher Dividend Pay-Out Target and Expanded Share Buyback Scale

<ul><li>ZTO’s revenue/ net profit in 3Q23 came in at RMB9.08bn/ RMB2.35bn, up 1.5%/21% YoY, on the back of excellent cost control that offset the ASP decline.</li><li>While the full-year parcel volume growth guidance of 20-24% YoY is maintained, the 1.5ppt market share gain target is removed as ZTO chose to avoid unprofitable volume amid the price competition.</li><li>While we continue to like ZTO’s strong execution and cost advantage, we are incrementally concerned about a potential transformation of price competition to price war. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ZTO’s revenue/ net profit in 3Q23 came in at RMB9.08bn/ RMB2.35bn, up 1.5%/21% YoY, on the back of excellent cost control that offset the ASP decline.While the full-year parcel volume growth guidance of 20-24% YoY is maintained, the 1.5ppt market share gain target is removed as ZTO chose to avoid unprofitable volume amid the price competition.While we continue to like ZTO’s strong execution and cost advantage, we are incrementally concerned about a potential transformation of price competition to price war. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ZTO Express (2057 HK) – Good Execution but Rising Concerns on Price Competition

<ul><li>ZTO’s revenue / net profit in 2Q23 came in at RMB9.7bn / RMB2.54bn, up 13%/41% in 2Q23.</li><li>The excellent cost control (unit cost -18% YoY) enabled ZTO to boost the unit gross margin by 22% YoY to RMB0.43/parcel.</li><li>ZTO maintains the full year parcel volume growth target to 20-24% YoY. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ZTO’s revenue / net profit in 2Q23 came in at RMB9.7bn / RMB2.54bn, up 13%/41% in 2Q23.The excellent cost control (unit cost -18% YoY) enabled ZTO to boost the unit gross margin by 22% YoY to RMB0.43/parcel.ZTO maintains the full year parcel volume growth target to 20-24% YoY. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ZTO Express (ZTO US) – 2Q23 Net Profit +41% YoY on Excellent Cost Control

China

ZTO Express (Cayman) Inc. operates as an express delivery company. The Company provides express delivery service through their nationwide network, as well as other value-added logistics services. ZTO Express serves customers globally.

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ZTO Express Cayman (2057 HK)

ZTO Express (ZTO US/2057 HK) - 3Q25 Results In-Line; Expect Further Improvement in ASP

ZTO’s reported/core net profit was +5%/-3% in 3Q25, which is largely in-line with our expectation. ZTO revised down the parcel volume growth...

CMB International

Logistics - Strong Policy Momentum to Curb Price War; a Similar Price Hike Story like 2022

We see chances for a moderate parcel ASP hike going forward, though not as strong as the uptrend in 2022 after the government’s intervention.

CMB International

ZTO Express (2057 HK) – Good Execution but Rising Concerns on Price Competition

ZTO’s revenue/ net profit in 3Q23 came in at RMB9.08bn/ RMB2.35bn, up 1.5%/21% YoY, on the back of excellent cost control that offset the ASP decline.

CMB International

ZTO Express (ZTO US) – 2Q23 Net Profit +41% YoY on Excellent Cost Control

The excellent cost control (unit cost -18% YoY) enabled ZTO to boost the unit gross margin by 22% YoY to RMB0.43/parcel. ZTO maintains the full...

CMB International

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