The Zhitong Finance App learned that Eneng Logistics (09956) rose nearly 5%. As of press release, it had risen 4.61% to HK$6.36, with a turnover of HK$34.8575 million.

According to news, Eneng Logistics achieved revenue of 2,378 billion yuan in the first quarter, up 15.2% year on year; total LTL freight volume reached 2.88 million tons, up 21.7% year on year; gross profit reached 382 million yuan, up 77.6% year on year, gross margin reached 16.1%, up 5.7 percentage points year on year, the best level in history; adjusted profit before tax was 280 million yuan, surging 133.7% year on year; adjusted net profit of 209 million yuan, surged 173.9% year on year; all performance indicators surged 173.9% year on year.

CICC said that the company's 1Q24 results greatly exceeded the forecast. I am optimistic that Eneng Logistics's medium- to long-term cost reduction and scale growth will continue to be realized. Based on 1Q's profit exceeding expectations, compounding the increase in demand for goods in the subsequent peak season and sufficient “bullets” to reduce costs, the bank is optimistic that the company will enter a healthy growth path of “lower cost - better pricing - higher share - stronger scale effect”. Looking at the medium to long term, the bank is expected to concentrate on the franchise industry pattern, and there is still room for further improvement in the company's profit margin.