STO profit surges on firmer pricing; bond plan dropped, safety probe hits
Profit more than doubles as price war eases STO expects first-half net profit of 950 million-1.06 billion yuan, up 110%-134% from a year earlier. The company credits industry rules against cut-throat competition, which let delivery prices recover, plus its own cost and digital improvements. Higher profit directly supports the shares.
This is the single biggest new fact driving the stock: a profit forecast more than doubling.
June revenue and parcel volumes both grew strongly June express service revenue rose 26.13% year on year to 5.475 billion yuan, with parcels up 18.58%. Average revenue per parcel rose 6.03% to 2.11 yuan. More parcels at a higher price per parcel means both volume and pricing are working in STO's favour.
Shows the profit gain is backed by real operating growth, not one-off items.
Convertible bond plan scrapped; safety probe opened STO terminated its planned convertible bond sale and withdrew the application, removing a source of future funding and signalling a change of plan. Separately, the State Post Bureau is investigating STO over weak safety management at its franchisees, which could bring fines or operating changes.
These are the main new negatives weighing on the stock this period.
Equity lawsuit dropped; buybacks continue STO's controller won an end to a 280 million yuan share-ownership lawsuit, removing legal doubt over who owns part of the stake. The company has also bought back 24.23 million shares, 1.58% of capital, for 339 million yuan, a sign management sees value in the stock.
Removes an overhang and shows cash being returned to shareholders.