Yuantong Express (600233): Low-end rapid growth and enhanced cost control capabilities

Yuantong Express (600233): Low-end rapid growth and enhanced cost control capabilities

Event: The company released the third quarter report of 2019, and the company achieved operating income of 216 in the first three quarters.

1.6 billion, an annual increase of 16.

07%, realizing net profit attributable to mother 13.

76 ppm, a ten-year increase of 9.

75%; the company achieved operating income of 76 in the third quarter.

63 ppm, an increase of 16 in ten years.

87%, net profit attributable to mothers5.

13 ppm, an increase of 13 in ten years.


  Single ticket prices continued to decrease, and cost control capabilities were further strengthened.

The price war in the express industry in the third quarter is still 夜来香体验网 fierce, and the company’s express ticket prices in June / July / August were 2 respectively.

81 yuan / 2.

72 yuan / 2.

73 yuan, which is longer than the previous two quarters.

The company strengthened its own cost control capabilities. The gross profit margin for the third quarter of 2019 was 12.

73%, compared with 12 in the previous two quarters.

11% and 12.

53% continued to improve.

Tongda’s homogeneous competition squeezes the industry’s competitive benefits, and the improvement of cost control capabilities will further strengthen the company’s competitiveness.

  Strengthen internal practice and increase infrastructure investment.

The company’s construction in the first three quarters was 9.

49 ppm, an increase of 61 in ten years.

82% in the third quarter increased construction in progress3.

1.7 合肥夜网 billion, the first is that the company increased investment in the construction of transfer centers.

The starting point of the company’s express transit is mainly borne by the self-operated hub transfer center system. According to the 2019 semi-annual report, the company currently has a total of 68 hub transfer centers. The increase of transfer centers can improve the efficiency of express delivery and enhance the company’s cost control advantages.

  The market share has been steadily increasing, and Double Eleven will usher in both volume and price.

The company express business volume express delivery growth, July / August / September 2019 the company express business volume express delivery is 7.

7.1 billion votes / 7.

6.7 billion votes / 8.

1.1 billion votes, with an annual growth of 41.

47% / 48.

93% / 42.

28%, much higher than industry 27.

57% business volume growth rate, the company’s Q3 business volume market share reached 14.


On October 15th, the company issued a notice that in order to cope with the cost increase caused by the peak business day of Double Eleven, the express delivery fee will be adjusted.

  The e-commerce promotion festival will bring the company the opportunity to increase the volume and price of express delivery services.

  Profit forecast: We believe that the industry’s price war will continue. At present, the pattern of e-commerce express delivery is unclear, but the concentration of enterprises on the right will gradually increase, and Yuantong Express, which underestimates and continues to improve its cost control capabilities, is preferred.It is expected that EPS for 2019-2021 will be 0.



14 yuan, corresponding to PE of 17x, 13x, 11x, maintaining the “buy” level.

  Investment suggestion: The industry price war continues, and the company’s business volume grows at an early stage.