(Yicai Global) May 18 -- Shares in ZTO Express surged today after the Chinese courier company reported a 84.3 percent leap in net profit in the first quarter from the same period last year and set higher goals for the year as the lifting of the country's zero-Covid policy boosts business.

ZTO raked in net profit of CNY1.7 billion (USD241.7 million) in the first three months, according to its latest earnings report released today. Revenue jumped 13.7 percent to CNY8.9 billion (USD1.3 billion) and the gross profit margin widened to 28.1 percent from 20.5 percent a year earlier.

As pandemic prevention measures were eased in the first quarter, demand for travel, dining out and entertainment rebounded, Chairman and Chief Executive Officer Lai Meisong said. Plenty of online spending also spurred strong growth in the express delivery sector.

ZTO has raised its delivery targets for the year to between 29.27 billion and 30.24 billion parcels from the previous estimate of between 28.78 billion and 29.75 billion, it said. The company also aims to increase its market share by at least 1.5 percentage points this year.

“ZTO delivered 85 million parcels per day in March and it expects to handle more this year,” said Chief Financial Officer Yan Huiping. The Shanghai-based company plans to install more automated machines and upgrade old facilities.

ZTO delivered 6.29 billion parcels in the first quarter, a jump of 20.5 percent year on year, and its market share expanded 1.8 percentage points to 23.4 percent, according to the financial report.

The country’s top six couriers, ZTO, Yunda Holding, YTO Express, STO Express, J&T Express and SF Holding, accounted for 86.3 percent of market share last year, according to ZTO data.

Editor: Kim Taylor