STO Express – Products, Competitors, Financials, Employees, Headquarters Locations

(Yicai Global) Feb. 2 — Chinese express delivery companies SF Express, STO Express, Deppon Logistics and YTO Express are anticipating profit to grow in 2022 despite the Covid-19 lockdowns, a lackluster economy and the rising cost of fuel. SF Express expects net profit to surge between 42 percent and 46 percent last year from the year before to reach between CNY6.1 billion (USD901.4 million) and CNY6.3 billion, the Shenzhen-based company said in its performance forecast released on the last day of January. It delivered 5.2 percent more parcels than a year earlier at 11.1 billion. While YTO Express, which released its forecast on Jan. 10, said it anticipates net profit to soar 86.3 percent over the period to CNY3.9 billion (USD580 million) while revenue should jump 18.6 percent to CNY53.6 billion. Out of the five Chinese courier firms to have released their performance forecasts for 2022 so far, only Yunda Express expects profit to grow at a slower clip. In the worst case scenario profit may slump as much as 11.4 percent but in the best case scenario it could gain 1.7 percent to reach between CNY1.3 billion (USD193 million) and CNY1.5 billion, Yunda Express said on January 31. The Shanghai-based company handled 17.5 billion parcels, a gain of 5.7 percent year on year. Last year, business was slow for courier firms because of the slowdown in the economy, weak consumption and a drop in operating efficiency due to the pandemic, Guosen Securities said in a research report. This year, though, demand for express deliveries will probably grow at double-digit or higher rates, it said. The macroeconomy is recovering, business is bouncing back, people are spending again, couriers have improved their efficiency since the pandemic and the base number last year was low. STO Express anticipates net profit of between CNY260 million (USD38.7 million) to CNY330 million in 2022 compared with losses of CNY909 million in 2021, the Shanghai-based company said yesterday. Its business volume surged 16.9 percent to 13 billion packages. Deppon Logistics said it is expecting net profit to more than quadruple to reach between CNY643 million and CNY671 million, whereas a year ago the Shanghai-based courier made a loss, it said on Jan. 30. Eight companies accounted for 84.5 percent of the express delivery market in China last year, a gain of 4 percentage points from the previous year. Some 110.6 billion parcels were delivered last year, an increase of 2.1 percent from 2021, according to figures from the State Post Bureau. Revenue from courier services climbed 2.3 percent year on year to CNY1.06 trillion (USD157.4 billion). Editor: Kim Taylor