ZTO Express: A 'Buy' On Earnings Beat And Appealing Yield (Rating Upgrade)

I've changed ZTO Express's rating from 'Hold' to 'Buy' after analyzing its financial performance and cash returns. ZTO's 4Q2025 EPS surpassed the consensus estimate by 5%, thanks to both external policy developments and internal self-help measures. ZTO's new capital allocation framework entails distributing at least half of its earnings to shareholders; this is better than the earlier minimum payout mandate of 40%.