Citigroup Expresses Mildly Positive View on ZTO Express-W's $1.5 Billion Convertible Bond Issuance; Preliminary 2025 Results Largely Meet Expectations

Stock News02-05 13:50

Citigroup has issued a research report stating that ZTO Express-W plans to issue $1.5 billion in convertible preferred notes while simultaneously repurchasing shares. With approximately $700 million remaining in its share buyback quota until September 2025, the company may restart its repurchase program around the time of its upcoming earnings release. The bank believes that the low interest rate and reasonable premium on the notes could fully offset the potential dilution effect, leading to a mildly positive view on the issuance of the convertible notes. Additionally, ZTO Express announced its preliminary 2025 performance, with parcel volume growing by 13.3%, which aligns with the bank's expectations. The company's revenue is projected to be between RMB 48.5 billion and RMB 50 billion, with gross profit ranging from RMB 12.15 billion to RMB 12.55 billion. The midpoints of both ranges are generally in line with the bank's and market expectations.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment