1、China(PRC)|InternetEquity ResearchSeptember 4,2025 ThomasChong*|Equity Analyst852 3743 8016|ZoeyZong*|Equity Analyst852 3743 8163|Anti-Involution Continues;Investment in UserExperience and Value CreationHighlights:(1)industry ASP is expected to further benefit from anti-involution campaign as price

2、hike rolls out to more regions;(2)low-ASPparcel volumes likely to be affected by price hikes.Quick commerce isnot seen to impact the sector;(3)SF and JDL invest in product and userexperience;we recently raised SF Intra-city PT on fast growth story;(4)factoring in more conservative assumptions for ZT

3、O and J&T;(5)use of AIacross different scenarios.Industry ASP benefits from anti-involution campaign.According to SPB,industry parcelvolume and revenue grew 15%and 9%YoY in the month of Jul.The anti-involution campaignaims to drive healthy sector development,with price hikes that started off in Yiwu

4、 andGuangdong in Aug 2025.The industry expects price hikes to be rolled out to more regions incoming months.Per earnings conference calls of Tongda companies,ASP will not go back toless than RMB1 per parcel,while industry competition is expected to continue.Low-ASP parcelvolumes may be affected by p

5、rice hikes.Quick commerce is not seen to impact to the sector.Both SF and JDL investing to improve service and user experience;we raised SF-Intra-cityPT on better-than-expected outlook.In 2Q,we saw both SF and JDL posted solid revenuegrowth,with SF benefiting from strong volume growth and JDL benefi

6、ted from strengthsin both external and internal revenue from the parent company.For JDL,we factor in thecontribution from food delivery revenue through 150K full-time riders in 3Q.Food delivery is abreakeven or slightly profitable business for JDL.We maintain that 2025 is an investment yearfor JDL i