(Yicai Global) Sept. 1 -- Led by Deppon Logistics, five of China’s leading listed express delivery companies posted big gains in first-half profit after putting a period of intense price competition behind them.

Net profit at Shanghai-based Deppon soared 502 percent to CNY94 million (USD13.6 million) in the six months ended June 30, while Shenzhen-based rival SF Holding logged a 231 percent jump to CNY2.5 billion (USD362.3 million), their latest earnings reports showed.

The robust earnings growth at couriers follows a truce in a cutthroat price war. Price competition has cooled since the second half of last year, after the average cost of sending a parcel in China plunged 57 percent in 2020 in the wake of Indonesia’s J&T Express entering the market.

The price war has ended and will not reignite, said Zhao Xiaomin, an expert in the sector, adding that although prices may fluctuate in the short term, they will increase over the long run.

The government has tightened competition rules and stepped up oversight of the sector to protect the rights and interests of deliverymen, SF said. Under the combined effects of policy guidance and governance, price competition has eased.

YTO Express and STO Express reported first-half net profits of CNY1.8 billion and CNY189 million, up 175 percent and 229 percent, respectively. Yunda Holdings’ profit rose 22 percent to CNY546 million. All except Deppon, had year-on-year revenue growth of 26 percent to 47 percent.

Despite improving earnings, the share performance of the five firms has varied since the start of this year. SF [SHE: 002352] is down 29.1 percent, Yunda [SHE: 002120] is 12.4 percent lower, STO [SHE: 002468] is up 19.1 percent, YTO [SHA: 600233] has added 16.4 percent, and Deppon [SHA: 603056] had climbed 28.3 percent.

Editor: Futura Costaglione