Shentong Express discloses 2024 mid-year report

According to the 2024 mid-year report, Shentong Express revealed that the company's revenue for the first half of the year was 21.57 billion yuan, up 13.0% year on year, achieving net profit to mother of 0.437 billion yuan, up 100.2% year on year; in the second quarter, the company's revenue was 11.44 billion yuan, up 10.6% year on year, achieving net profit to mother of 0.247 billion yuan, up 188.9% year on year.

The number of pieces is growing rapidly, far exceeding the industry average

China's express delivery industry volume growth rate reached 23.1% in the first half of the year. The company steadily promoted a three-year 10 billion production capacity improvement project to consolidate and enhance the efficiency of transit hubs. In the first half of the year, the express delivery business volume was 10.227 billion units, up 32.47% year on year; the market share was 12.76%, up 0.90 percentage points year on year, but due to the still intense competition in the industry and the share of lightweight parts increased, the company's single ticket revenue declined. The decline in the second quarter narrowed slightly to 9.2%.

Single ticket costs have been reduced significantly, and single ticket profits have rebounded

In the first half of the year, the company continued to make efforts to control costs. On the operator side of the transit center, the company increased investment in automated sorting equipment to improve package sorting and processing capacity. On the transportation side, the company formulated new route planning standards, increased the direct transmission rate, and increased the use of its own capacity and high-capacity vehicles, increasing the proportion of its own transportation capacity, which significantly reduced costs. The company's core cost of a single ticket declined markedly in the first half of the year. Among them, the savings in the second quarter were even more significant.

The company's expenses were generally stable in the first half of the year. Among them, sales, management, R&D, and finance expenses in the second quarter were 0.38%, 1.94%, 0.39%, and 0.50%, respectively, down 0.25 pct, up 0.06 pct, up 0.09 pct, and 0.07 pct, respectively. Thanks to the rapid increase in order volume and a significant decline in unit costs, the company's profit doubled, and single ticket profit increased. Among them, single ticket profit increased to 0.044 yuan in the second quarter, an increase of 0.024 yuan over the previous year.

Investment advice

China's express delivery industry maintained steady and rapid growth. The growth momentum did not decline in the second half of the year. The company continued to strengthen its own transit operation capabilities, while continuing to empower franchisees, optimize the terminal network structure, and ensure stable and efficient network operation. The company's net profit for 2024-2026 is estimated to be 0.85 billion yuan, 1.2 billion yuan, and 1.51 billion yuan, respectively. The peak season for the industry is gradually arriving, and stock prices are expected to continue to be catalyzed under the industry's “anti-domestic roll” policy to maintain a “buy” rating.

Risk warning:

The macroeconomic economy declined, the unit volume growth rate fell short of expectations, and the peak season price increase fell short of expectations