Shares of Full Truck Alliance (YMM) remained largely unchanged in premarket trading on Monday, as investors weighed a fund's exit from the stock against the company's ongoing operational growth. The stock closed Friday at $8.82, down 0.34%, and was quoted at $8.83 in premarket activity.
The muted price action follows a report over the weekend that Cederberg Capital sold its entire stake of 1,828,900 shares during the first quarter, a position valued at approximately $20 million. The disclosure came via a 13F filing, which provides a quarterly snapshot of institutional holdings but may lag actual trades by several weeks. The fund's exit adds to the bearish sentiment that has pressured YMM shares, which have fallen 24% over the past year, contrasting sharply with the S&P 500's roughly 28% gain.
Q1 Results Show Mixed Signals
Full Truck Alliance reported its first-quarter financial results, revealing a mixed performance. Revenue rose 5.5% year-over-year to RMB2.85 billion, driven by a 14.3% increase in fulfilled orders to 55.0 million. However, net income declined to RMB994.1 million from RMB1.28 billion in the same period last year. The company's transaction-service revenue, which is tied to freight orders processed on its platform, jumped 33.1% to RMB1.39 billion, reflecting a shift in revenue mix.
President Langbo Guo attributed the improvement to "revenue mix improvements," while CEO Peter Hui Zhang highlighted "strengthening network effects" as a key driver. Despite these gains, value-added services revenue fell to RMB376.0 million from RMB452.8 million, primarily due to a decline in credit-solutions revenue. The non-performing loan ratio increased to 3.2% from 2.9% at the end of 2025, signaling growing credit strain.
Outlook and Dividend
Looking ahead, Full Truck Alliance provided a cautious outlook for the second quarter. The company expects total net revenue in the range of RMB3.07 billion to RMB3.17 billion, below the RMB3.24 billion reported a year earlier. However, revenue excluding freight brokerage is forecast to grow 7.1% to 11.7%. The board approved a cash dividend of $0.084 per American depositary share (ADS), payable around July 21.
CFO Simon Cai noted that higher fuel costs could act as a "near-term headwind" for demand. The company is implementing fuel-linked pricing and offering discounts to support truckers. Broader market concerns include potential weakness in freight brokerage, rising credit losses, and the impact of diesel price volatility on long-haul shipping demand.
Market Context
Premarket trading on Monday showed a calm risk appetite, with major ETFs like the SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust (QQQ) edging higher. The KraneShares CSI China Internet ETF (KWEB), which tracks U.S.-listed Chinese internet stocks, also ticked up. For U.S. investors, Full Truck Alliance remains the primary vehicle for exposure to China's long-haul digital freight market, as competitors like GOGOX Holdings trade only in Hong Kong.
The stock's next moves remain uncertain, with potential headwinds from freight brokerage contraction, credit deterioration, and macroeconomic factors. The company's order growth, while robust, may not be enough to shift market sentiment in the near term.