CITIC Securities: The Middle East is expected to become an important growth pole for Chinese logistics companies to globalize. Focus on Jitu Express-W and JD Logistics.

CITIC Securities released a research report stating that in the medium to long term, the continuous improvement of e-commerce penetration in the Middle East, normalization of cross-border trade, and improvement of digital infrastructure will continue to drive growth in the express delivery industry. Chinese logistics companies, with their synergies with cross-border e-commerce, digital operational capabilities, cost control experience, and rapid adaptation to localization, are expected to continuously increase their market share. With the improvement of end-to-end efficiency, popularization of sorting automation, and release of economies of scale, unit costs will gradually optimize, and profitability levels are expected to improve. With policy support in Gulf countries, consumer upgrades, and the development of standardized logistics, there will be further industry growth opportunities, and the Middle East is expected to become an important growth pole for Chinese logistics companies' globalization. Key focuses should be on Chinese express delivery companies ZTO Express and JD Logistics.