ZTO Express

ZTO Express (ZTO.US) surged to an intraday high of $24.28 during pre-market trading on July 17 but slumped to open at $23.85, down 3.0% from the prior close of $24.59, with only a single regular-session trade of 3,542 shares so far. The stock had rallied to $24.59 in post-market yesterday, but the pre-market session turned bearish, setting up a weak open. On earnings, Q1 revenue rose 28.15% YoY to $1.92 billion, net profit increased 11.68% to $306 million, and net margin was 15.95%, though operating profit growth decelerated from Q4. The company's ongoing buyback program—over 220K shares repurchased for ~$5 million in June and substantial cumulative repurchases in May–June—failed to offset the opening selloff. Price-wise, the stock at $23.85 sits above the 20-day MA of $23.00 and the 60-day MA of $23.51, but remains 8.97% below its 52-week high of $26.20, while YTD it is up 11.14%. On the positive side, Huatai and other analysts maintain Buy ratings, and Macquarie raised its target price to $31.4, citing solid volume and ASP growth in Q1.