According to a research report from CLSA, investors are broadly aware of the industry slowdown but remain focused on the outlook for average selling prices and the impact of oil prices.

Express delivery companies generally agree that average selling prices will remain stable at least through the first quarter of next year. ZTO Express (Cayman) Inc (ASX: 02057) expects unit prices to rise by RMB 0.01 next year, driven by an improved customer mix.

However, competition is likely to remain intense until regulators relax requirements for horizontal mergers and acquisitions. The report noted that S.F. Holding Co., Ltd (ASX: 06936) (002352.SZ) will see its net profit pressured by rising fuel costs, while its overseas business is increasingly becoming an important growth driver, with its moat in logistics network capabilities continuously deepening.

As for J&T EXPRESS-W (ASX: 01519), its sales volume in Southeast Asia and Latin America is growing in an orderly manner, and the company aims to achieve EBIT of US$0.07 per unit in both regions over the long term. With improving visibility in overseas growth and the prospect of a strengthening domestic business, J&T remains the brokerage's top pick in the sector.

The brokerage currently assigns a target price of HK$13.6 to J&T, HK$216 to ZTO, and RMB 41.3 to S.F. Holding's A-shares, all with an "Outperform" rating.