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Yunda Co., Ltd. (002120) 2019 Interim Report Comment: Growth in Gross Profit, Mastery Express Express Breakthrough Is Expected to Reduce Follow-up Expenses

Yunda Co., Ltd. (002120) 2019 Interim Report Comment: Growth in Gross Profit, Mastery Express Express Breakthrough Is Expected to Reduce Follow-up Expenses
Core point of view The company’s gross profit / deducted non-net profit increased by 27% / 21% respectively in 2019Q2.The same increase of 30% / 28%.In the first half of the year, the company’s gross profit increased by 36%, which was significantly higher than other Tongda companies.It is expected that the rapid transportation business will be carried out, which will be reduced every six months, and the company’s management expenses will increase, which is expected to further boost the performance.   2019Q2 performance overview: The company’s overall gross profit for Q2 increased by 26.8%, but the management / sales / financial expenses increased by 44% / 28% / 136% to 2 respectively.900 million / 0.500 million / 0.04 trillion and tax efficiency temporarily improved 3.With the impact of 1pcts, the company’s Q2 deduction of non-net profit also increased by 20.7% to 6.900 million.The company’s overall gross profit increased by 36 in the first half of the year.4%, but the cost side has been improved under pressure, the three fees have increased by 57.5% to 6.800 million, the growth rate exceeded the growth rate of gross profit, which has a certain impact on performance.However, benefiting from the company’s investment income increased by 74.9% to 1.100 million US dollars (mainly due to the increase in bank wealth management income), the company’s net profit attributable to mothers in the first half of the year / net non-deduction increased by 29.6% / 27.5% to 13.0 billion / 11.900 million.   After considering the subsidy policy, the price of the company fell by 10% in the first half of the year.According to the company’s interim report, we estimate that the company’s payment is 1.60 yuan / piece, excluding the impact of the payment fee, the company’s price in the first half of the year was 1.70 yuan / piece, down 2 before.3%.  At the same time, in the first half of the year, our competitors’ express delivery costs fell by about 9% to 1.01 yuan, and then assume that the payouts are equal to the payout income1.60 dollars.Finally, according to the single ticket express gross profit = single ticket price-single ticket cost-single ticket distribution expenses-single ticket supplement, the company’s single ticket subsidy is calculated as 0.14 yuan.If the single ticket subsidy is deducted from the price, it can be calculated that the company’s final price is also reduced by about 10%.   In the first half of the year, Yunda’s overall gross profit increased by 36.4%, the growth rate is significantly faster than other companies, showing the expected profitability.  In the first half of the year, Yunda’s overall gross profit increased by 36.The gross profit of Zhongtong / Yuantong / Shentong increased by 22% / 9% / 7% respectively. The company’s gross profit growth rate was significantly higher than that of other Tongda companies.In the first half of the year, the volume of Yunda / Zhongtong / Yuantong / Shentong increased by 44% / 44% / 35% / 47% respectively. In the case of little difference in the growth rate of the four companies, Yunda’s gross profit growth rate was significantly higher.In the other three companies, it demonstrated the company’s cost control capabilities and outstanding profitability beyond the price war.   The rapid growth of express business has pushed up management expenses. It is expected that after the freight business is transferred in the second half of the year, the company’s expense growth will return to normal.In the first half of the year, the company’s administrative expenses increased by 57.6% to 5.800 million US dollars, a significant increase. We believe that management costs have risen significantly or the company has occupied human resources to rapidly expand the express business (the company’s express business increased by 177% to 4 in the first half of the year.300 million), long push up management costs.We believe that reducing the company’s divestiture of the express transportation business in the second half of the year will increase the growth rate of management expenses to normal levels, which will help support the company’s performance and further increase its growth.   Risk factors: the decline in e-commerce demand; the industry’s price war exceeds expectations; the risk of rising costs such as labor and oil prices;   Investment suggestion: In the first half of the year, the company’s growth rate of gross profit and net profit ranked first in the accessibility system while the volume of the company maintained rapid growth. In conversion, the company’s volume growth rate in July led the industry for the first time. It is expected 天津夜网 that the replacement of freight business in the second half of the year will furtherBoost performance.We maintain our EPS forecast for 2019/20/21.25/1.55/1.87 yuan, corresponding to PE is 30/24/20 times, maintain “Buy” rating.