Benefiting from changing
consumer behavior amid
COVID-19, we expect the
volume of the express
delivery sector to maintain
steady growth for a period
of time. The financial
risk of the companies
sampled in this study
is, in our view, controllable.
Lower leverage and good
interest coverage ratios
should help them maintain
good financial positions.
Fierce market competition
may lead to declining
profitability among our
sampled companies. However,
these firms, in our view,
have a relatively good
buffer in their credit
metrics, and could maintain
their financial risk profile
to some extent, despite
their falling profits
and ongoing capital investment.
Within our sample, we
see China Post as having
the strongest indicative
issuer credit quality,
closely followed by SF
Holdings. However, Best
Group’s indicative issuer
credit quality is at a weaker level.