Yuantong Express (600233) Semi-annual Report Review: Costs Continue to Improve, Main Profit of Express Delivery Stable

Yuantong Express (600233) Semi-annual Report Review: Costs Continue to Improve, Main Profit of Express Delivery Stable

Event: Yuantong Express Announces 2019 Interim Report.

The company achieved revenue of 139 in 2019H1.

5.3 billion, an annual increase of 15.

64%; net profit attributable to mother 8.

63 ppm, a ten-year increase of 7.

63%; net profit after deduction is 8.

29 ppm, a ten-year increase of 7.


Q2 company achieved revenue of 75.

09 million yuan, an annual increase of 11.

7%; net profit attributable to mother 4.

98 ppm, a ten-year increase2.

5%; deduct non-attributed net profit 4.

72 ppm, an increase of 0 in ten years.


The market share continued to increase, and the single ticket revenue decreased by about 5% with the same caliber: the company completed the express delivery business in the first half of the year38.

3.0 billion pieces, an increase of 35 in ten years.

1%, the market share reached 13.

7%, an increase of 0 from the end of 18.

6 points, of which Q1 / Q2 business volume growth rate were 39.

6% / 31.

9%, Q2 volume growth rate has improved, judging from July data, the company’s volume growth rate rebounded significantly (+41.


In the first half of the year, the company’s single-piece revenue for the express delivery business was 3.

19 yuan, down 10 before.

7%, considering the adjustment of the caliber, the actual single-piece income fell by about 5.

1%, Q1 / Q2 single ticket revenue fell by 5 respectively.

5% / 5.

0%, mainly due to the continued price competition among leading companies.

The unit cost has continued to improve, and the profitability of the main express delivery business is stable: the company’s single ticket delivery cost was 2 in the first half of the year.

81 yuan, at least -11.

6%, also due to the adjustment of the caliber, it is estimated that the actual unit cost of the company is reduced by about 5%.

3%, of which the single ticket transportation cost is 0.

74 yuan (previously downgraded to 0.

1 yuan), the transfer cost of a single ticket outlet is 0.

34 yuan (previously downgraded to 0.

16 yuan, caliber adjustment), single ticket center operation cost is 0.

39 yuan (previously downgraded to 0.05 yuan), the single ticket delivery cost is 1.

30 yuan (previously downgraded to 0.

09 yuan), the decrease in transit and transportation costs was mainly due to the company’s continuous automated repair and improved refined management.

Under good cost control, the company’s main business profitability remained stable with a single gross profit of 0.

38 yuan, a slight decrease of 0 each year.

01 yuan.

Capital expenditures continued, and long-term profitability improved: The company’s capital expenditures continued in the first half of the year, and fixed assets were purchased and built, and intangible assets and long-term assets were paid in cash.

35 ppm, a five-year increase of 5.

4%, R & D expenses increased by at least 87%, and the company focused on laying a solid foundation for continuous cost improvement.

In the first half of the year, the company’s single-ticket deduction of non-net profit was 0.

22 yuan, down by 0 every year.

06 yuan, the resulting interest expense on convertible bonds increased the cost of single tickets, replacing other businesses with a profit shift: Yuantong Express International’s freight forwarding business achieved revenue in the current period13.

200 million (-13.

6%) and cost 11.

100 million (-14.

6%), with a gross profit of 2.

03 billion US dollars, a year-on-year decrease of 20 million, and the gross profit of other businesses in the main business each time decreased by about 80 million, mainly due to the rapid rise in air freight costs.

Investment suggestion: The company’s strategic adjustment has achieved significant results, and its operating inflection point has been reached. With the company’s continuous supplement of core assets and continuous improvement in service quality, the company’s market share and profitability will continue to improve.

At present, the difference between the company and the 佛山桑拿网 express delivery company on the right of A shares has narrowed, and the improvement in cost efficiency is expected to continue to exceed expectations.

We estimate that the company’s net profit attributable to its parent in 2019-2021 will be 21 respectively.

6, 25.

5, 30.

1 ‰, corresponding to the current PE of 15, 13, 11 times, maintaining the “Buy-A” level.

Risk warning: fierce price wars in the e-commerce parts market, excessive capital expenditures eroding cash flow and profits, and rising rigid costs such as labor and oil prices.