IvyRock Asset Management: Charles Huang’s Top 5 Stock Picks

4. ZTO Express (Cayman) Inc. (NYSE:ZTO)

IvyRock Asset Management’s Stake Value: $14,119,000

Percentage of IvyRock Asset Management’s 13F Portfolio: 13.37%

Number of Hedge Fund Holders: 21

Charles Huang’s IvyRock Asset Management owns 460,516 shares in ZTO Express (Cayman) Inc. (NYSE:ZTO), worth $14.1 million as of June this year. ZTO Express (Cayman) Inc. (NYSE:ZTO) represents 13.37% of Huang’s Q2 portfolio, and is one of his top stock picks. It is a logistics company offering express delivery, parcel tracking, and line-haul transportation. The Shanghai-based ZTO Express (Cayman) Inc. (NYSE:ZTO) offers its services to domestic and international customers, who mainly consist of ecommerce and conventional merchants. 

Goldman Sachs analyst Ronald Keung, on October 19, downgraded ZTO Express (Cayman) Inc. (NYSE:ZTO) from Buy to Neutral, keeping an unchanged price target of $44 on the stock. Keung stated that ZTO Express (Cayman) Inc. (NYSE:ZTO)’s parcel growth for Q2 was 26%, which was lower than the industry average of 29%. The market share for the company also dropped by 0.5pts to 21%. 

As of Q2, 21 hedge funds were bullish on ZTO Express (Cayman) Inc. (NYSE:ZTO), up from 15 in Q1.