Summary of Shentong Express Conference Call Company Overview - **Company**: Shentong Express - **Period**: First half of 2025 - **Industry**: Express Delivery Key Points Business Performance - **Volume**: Achieved a business volume of 12.355 billion parcels, a year-on-year increase of 20.7% [1] - **Market Share**: Increased market share to 12.91%, up 0.15 percentage points year-on-year [2] - **Revenue**: Total revenue reached 25.02 billion yuan, a 16% increase year-on-year; express revenue grew by 15.7% [1][2] - **Net Profit**: Reported a net profit of 453 million yuan, with a slight decline in net profit per parcel to 0.037 yuan [1][4] - **Cash Flow**: Operating cash flow decreased by 59% year-on-year, primarily due to price reductions on waybills and growth in large customer business [1][4] Cost Management - **Capital Expenditure**: Capital expenditure decreased by 9% to 1.39 billion yuan, mainly for equipment, vehicles, and buildings [1][4] - **Cost per Parcel**: The terminal cost per parcel decreased by 0.01 yuan to 0.67 yuan, benefiting from the integration of the Yiwu transit center and collaboration with Daniao [1][7] - **Overall Costs**: Total costs rose by 16.8% to 23.67 billion yuan, with express costs increasing by 16.7% [4] Market Dynamics - **E-commerce Growth**: Online retail sales of physical goods grew by 6%, driving a 19.3% increase in parcel volume [1][2] - **Anti-Competition Policies**: The "anti-involution" policy is expected to positively impact pricing and performance in the second half of the year, with price increases already observed in regions like Yiwu and Guangdong [5][6] Strategic Initiatives - **Business Strategy**: Focus on balancing scale, profit, and customer experience by abandoning the lightweight parcel strategy [1][7] - **Acquisition of Daniao**: The acquisition is aimed at expanding into new business areas such as regional delivery and instant retail, enhancing revenue and optimizing product structure [3][10] - **AI and Automation**: Emphasis on AI technology for operational efficiency, including the introduction of autonomous vehicles to reduce delivery costs [13][20] Future Outlook - **Capital Expenditure Plans**: Expected to maintain capital expenditure around 3 billion yuan in 2025, focusing on equipment and transportation [3][9] - **Industry Growth Forecast**: Anticipated industry growth rate of approximately 15% for 2025, with potential downward pressure due to pricing changes [8] Additional Insights - **Training Programs**: Initiatives like the "Second Generation Cultivation Plan" aim to enhance management skills among successors in the franchise network [14] - **Digital Transformation**: Ongoing efforts to digitize operations and improve efficiency through AI and data analytics [16][17] This summary encapsulates the key insights from the conference call, highlighting Shentong Express's performance, strategic initiatives, and market outlook.

Group 1: Metal Sector - Luoyang Molybdenum's net profit forecast for 2025 is 168.65 billion CNY, with a PE ratio of 15.32[12] - The company expects to increase copper production to 70,000 tons in 2025, a 56% year-on-year growth[14] - The strategic partnership with CATL aims to enhance lithium and nickel resource acquisition, contributing over 70% to gross profit[17] Group 2: Cement Sector - Huaxin Cement's domestic sales are projected to decline from 5,004,000 tons in 2023 to 4,078,000 tons in 2025, while overseas sales are expected to grow to 2,017,000 tons[30] - The company aims for a net profit of 19.58 billion CNY from overseas operations by 2026, reflecting a 25% increase from 2025[30] Group 3: Logistics Sector - Eastern Airlines Logistics' revenue from the US market accounts for 20%-30%, with a 5% decline in comprehensive freight rates due to tariff policies[32] - The company is adjusting its route structure to improve performance in the European market, anticipating a recovery in the second half of the year[32] Group 4: Chemical Sector - Wanhua Chemical's net profit is expected to recover as MDI prices stabilize, with a projected increase in demand from the furniture industry[50] - The company is positioned to benefit from a tightening supply of TDI, with prices expected to remain high through 2027[50] Group 5: Power Sector - Changjiang Electric Power's EPS forecast for 2025 is 1.38 CNY, with a PE ratio of 20.26, supported by a commitment to maintain a dividend payout ratio of no less than 70%[74] - The company plans to repurchase shares worth 4-8 billion CNY, reflecting confidence in its future growth[74]

Report Summary 1. Report Industry Investment Rating There is no information about the industry investment rating in the report. 2. Core Viewpoints - In the first half of 2025, the domestic online consumption showed good momentum, driving the strong development of the express delivery industry. The express delivery business volume and revenue in China increased significantly year - on - year. Against this backdrop, Shentong Express achieved "stable business growth and experience upgrade" through a series of strategic measures [25]. - The "anti - involution" policy in the express delivery industry has been actively responded to at the policy and regional levels. The company will actively respond to this call, which is expected to have a positive impact on its operation and service [30]. - In the second half of 2025, due to the "anti - involution" policy and the expansion of the industry's order volume base, the industry growth rate may slow down, but express delivery prices will have certain resilience [33]. 3. Summary by Directory 3.1. Research Basic Situation - The research object is Shentong Express, belonging to the logistics industry. The reception time was on August 29, 2025. The listed company's reception staff included the deputy general manager and financial director Liang Bo, the board secretary Guo Lin, and the IR director He Min [16]. 3.2. Detailed Research Institutions - There were 7 securities companies, 8 fund management companies, 1 asset management company, 2 investment companies, 3 other institutions, 1 foreign - funded bank, and 1 other financial company participating in the research [20]. 3.3. Research Institution Proportion - Securities companies accounted for 30%, fund management companies 35%, asset management companies 4%, investment companies 9%, other institutions 13%, foreign - funded banks 4%, and other financial companies 4% [21]. 3.4. Main Content Data 3.4.1. Company Management's Introduction of the 2025 Semi - annual Business Situation - In the first half of 2025, domestic online retail sales increased by 6.0% year - on - year, and the proportion of online retail sales of physical goods in total social consumer goods retail sales was 24.9%. The express delivery business volume in China reached 956.4 billion pieces, a year - on - year increase of 19.3%, and the business revenue was 718.78 billion yuan, a year - on - year increase of 10.1% [25]. - Shentong Express completed a business volume of 12.35 billion pieces in the first half of the year, a year - on - year increase of 20.7%, with a market share of 12.91%, a year - on - year increase of 0.15 percentage points. In the second quarter, the business volume was 6.54 billion pieces, a year - on - year increase of 15.95%, and the market share was 12.95% [25]. - The company achieved an operating income of 25.02 billion yuan, a year - on - year increase of 16.0%. The express delivery income was 24.69 billion yuan, a year - on - year increase of 15.7%, and the single - ticket express delivery income was 2.00 yuan, a year - on - year decrease of 0.09 yuan [26]. - The company's operating cost was 23.67 billion yuan, a year - on - year increase of 16.8%, and the express delivery cost was 23.49 billion yuan, a year - on - year increase of 16.7%. The single - ticket operating cost decreased steadily [27]. - The company's net profit attributable to the parent was 453 million yuan, a year - on - year increase of 3.7% [28]. - The net cash flow from operating activities was 741 million yuan, a year - on - year decrease of 59.6%. The capital expenditure was 1.39 billion yuan, a year - on - year decrease of 9%, mainly invested in machinery and equipment, transport vehicles, and buildings [29]. 3.4.2. Company's Responses to Investor Questions - Regarding the "anti - involution" progress in the express delivery industry, policies have been introduced at the national level, and many regions have actively responded. The company will also actively respond to this call, which is expected to have a positive impact on its operation and service [30]. - In the first half of 2025, the company's capital expenditure was 1.39 billion yuan, a year - on - year decrease of 9%, mainly invested in machinery and equipment, transport vehicles, and buildings. It is expected that the annual capital expenditure this year will be similar to last year, but the specific amount may be affected by the capital payment rhythm [32]. - In the second half of 2025, due to the "anti - involution" policy and the expansion of the industry's order volume base, the industry growth rate may slow down, but express delivery prices will have certain resilience [33]. - After the acquisition of Danniao, the two sides can conduct resource integration in multiple links, optimize cost expenses, and enhance the overall profitability of the listed company. The listed company can also enter the high - end market and enrich its business product matrix [34]. - In the first half of 2025, the company has applied AI technology in many aspects, which has a positive impact on optimizing the management process, improving service quality, and reducing operating costs. In the future, the company will continue to increase technology investment and promote the in - depth upgrade of full - scenario intelligent operation [36][38]. - In the first half of 2025, the company's platform single - order business volume increased by more than 170% year - on - year. In the future, the company will upgrade the single - order platform and enhance its digital intelligence capabilities [39].

Core Viewpoint - Shentong Express reported a revenue of 25.025 billion yuan for the first half of 2025, marking a year-on-year growth of 16.02% and a net profit of 453 million yuan, up 3.73% year-on-year, despite a significant decline in cash flow from operating activities [1] Financial Performance - Revenue for the first half of 2025 reached 25.025 billion yuan, representing a 16.02% increase compared to the previous year [1] - Net profit attributable to shareholders was 453 million yuan, reflecting a year-on-year growth of 3.73% [1] - Net cash flow from operating activities was 740 million yuan, showing a decline of 59.6% year-on-year [1] Business Operations - The company completed a total express delivery volume of 12.348 billion pieces, which is a year-on-year increase of 20.73% [1] - Gross margin stood at 4.89%, down 0.87 percentage points compared to the previous year [1] - Market share increased to 12.91%, up 0.15 percentage points year-on-year [1] Infrastructure Development - Shentong Express has been enhancing its infrastructure with 514 sets of automated sorting equipment in its transfer centers, a year-on-year increase of over 21.23% [1] - The company added 224 sets of automated equipment at its end-point outlets, with a total investment of approximately 184 million yuan [1] - The use of unmanned vehicles for last-mile delivery has expanded to over 100 cities nationwide [1] - The company anticipates that by the end of 2025, its normal throughput capacity could exceed an average of 90 million packages per day [1]

Core Insights - Shentong Express reported a business volume of 12.348 billion parcels in the first half of 2025, a year-on-year increase of 20.73%, surpassing industry growth rates [1] - The company achieved operating revenue of 25.025 billion yuan, up 16.02% year-on-year, and a net profit attributable to shareholders of 453 million yuan, reflecting a 3.73% increase [1] - Market share rose to 12.91%, an increase of 0.15 percentage points compared to the previous year, continuing a steady upward trend [1] Digital Transformation - The growth in performance is attributed to the company's digital intelligence strategy, which has entered a harvest phase [1] - The "Visible Kunlun" digital twin platform has been developed to create an intelligent operation system, enabling 100% visual tracking of the entire parcel process [1] - This system acts as a "smart brain" for the logistics network, allowing for precise simulation of operational status and automated resource scheduling, significantly enhancing operational accuracy and response speed [1] Infrastructure Development - In the first half of 2025, Shentong Express continued to invest in intelligent infrastructure, with 514 automated sorting devices installed in transfer centers, a year-on-year increase of over 21.23% [1] - A total of 224 automated devices were added at terminal outlets, with an investment of approximately 184 million yuan [1] - The deployment of unmanned vehicles has expanded to over 100 cities nationwide, focusing on six core delivery scenarios [1] New Logistics Center - The newly opened Guangdong Jieyang center, capable of handling a daily capacity of over 10 million parcels, is expected to significantly enhance logistics efficiency and service quality in the eastern Guangdong region [4] - The center covers an area of 164,000 square meters and is equipped with advanced sorting systems, achieving automation and operational efficiency [4] - The center's strategic location allows for a logistics circle that covers Jieyang within 30 minutes and reaches Shantou, Chaozhou, and Meizhou within 2 hours [4] Operational Efficiency - The overall operational efficiency has improved by over 15% with the new center's operation [5] - The time for parcel processing has been reduced by 1.5 hours, and the damage rate has decreased by 50% year-on-year [5]

2025年8月29日15:30 - 16:30，申通快递举行业绩说明会，通过电话会议形式，接待了长江证券、广发基 金、嘉实基金等77家机构的105位投资者。公司副总经理兼财务负责人梁波、董事会秘书郭林、IR负责 人何敏参与接待。 会上，公司管理层介绍了2025年半年度经营情况，并就投资者关心的问题进行回复。 2025年上半年经营亮点与财务表现 2025年上半年，国内线上消费增势良好，带动快递行业发展动力强劲。国家邮政局数据显示，上半年我 国快递业务量累计完成956.4亿件，同比增长19.3%；业务收入完成7,187.8亿元，同比增长10.1%。 在此背景下，申通快递上半年业务量完成123.5亿件，同比增长20.7%，市占率达12.91%，同比提升0.15 个百分点，二季度业务量65.4亿件，同比增长15.95%，市占率为12.95%。 财务数据方面，公司实现营业收入250.2亿元，同比增长16.0%，其中快递收入246.9亿元，同比增长 15.7%，单票快递收入2.00元，同比下降0.09元。营业成本236.7亿元，同比增长16.8%，其中快递成本 234.9亿元，同比增长16.7% 。归母净利润4.53亿元 ...

Group 1: Company Performance Overview - In the first half of 2025, the domestic online retail sales grew by 6.0%, accounting for 24.9% of total retail sales, driving strong growth in the express delivery sector [1] - The company completed a total business volume of 12.35 billion pieces, a year-on-year increase of 20.7%, with a market share of 12.91%, up by 0.15 percentage points [2] - The company's revenue reached 25.02 billion CNY, a year-on-year growth of 16.0%, with express delivery revenue at 24.69 billion CNY, increasing by 15.7% [2] Group 2: Cost and Profit Analysis - Operating costs amounted to 23.67 billion CNY, up by 16.8%, with express delivery costs at 23.49 billion CNY, increasing by 16.7% [2] - The net profit attributable to the parent company was 453 million CNY, reflecting a year-on-year growth of 3.7% [2] - The net cash flow from operating activities was 741 million CNY, a decrease of 59.6% due to increased revenue from monthly settlement clients and reduced pre-collection of waybill fees for franchisees [3] Group 3: Industry Trends and Company Strategy - The express delivery industry is responding to the "anti-involution" policy, with significant actions taken in regions like Zhejiang and Guangdong to curb low-price competition [4] - The company plans to enhance its digital and intelligent operations while fostering a new franchise network culture to improve service quality [4] - The company is focusing on integrating AI technologies into its operations to optimize management processes and reduce costs [6] Group 4: Future Outlook - The expected growth rate for the express delivery industry may slow down in the second half of 2025 due to the "anti-involution" policies and an expanded volume base [5] - The company anticipates that the acquisition of Danbird Logistics will enhance its market position in high-end services and improve overall profitability [5] - The company aims to increase its daily capacity to over 90 million pieces by the end of 2025, with capital expenditures expected to remain similar to the previous year [4]

Market Overview - The logistics sector experienced a decline of 4.05% on August 29, with SF Holding leading the drop [1] - The Shanghai Composite Index closed at 3857.93, up 0.37%, while the Shenzhen Component Index closed at 12696.15, up 0.99% [1] Individual Stock Performance - SF Holding (002352) closed at 44.57, down 7.91%, with a trading volume of 1.669 million shares and a transaction value of 7.564 billion [2] - YTO Express (圆通速递) closed at 16.95, down 7.12%, with a trading volume of 506,200 shares and a transaction value of 872 million [2] - Shentong Express (申通快递) closed at 17.41, down 5.38%, with a trading volume of 350,800 shares and a transaction value of 617 million [2] - Yunda Holdings (韵达股份) closed at 7.99, down 5.33%, with a trading volume of 849,000 shares and a transaction value of 692 million [2] Capital Flow Analysis - The logistics sector saw a net outflow of 1.08 billion from institutional investors, while retail investors contributed a net inflow of 661 million [2][3] - Major stocks like Zhongchu股份 (中储股份) experienced a net outflow of 47.041 million from institutional investors [3] - Long-term investors showed a preference for stocks like Wanlin Logistics (万林物流), which had a net inflow of 37.022 million from institutional investors [3]

Investment Rating - The report maintains a "Buy" rating for Shentong Express [5] Core Views - The company reported a revenue of 25.025 billion yuan for the first half of 2025, reflecting a year-on-year growth of 16.02%, while the net profit attributable to the parent company was 453 million yuan, up 3.73% year-on-year [5] - The second quarter faced pressure from price wars, but the company managed to balance volume and profit, with a focus on maintaining stable growth in business volume [5] - The company is expected to benefit from price increases in core regions starting in August, which could enhance single-ticket revenue and profit margins [5] - Continuous improvement in core competitiveness and network expansion is noted, with significant investments in automation and capacity upgrades [5] - The profit forecast for 2025-2027 remains unchanged, with expected net profits of 1.383 billion, 1.685 billion, and 2.003 billion yuan respectively, indicating growth rates of 33.0%, 21.8%, and 18.9% [5] Financial Data and Profit Forecast - Total revenue projections for 2025E is 57.483 billion yuan, with a year-on-year growth rate of 21.9% [4] - The expected net profit for 2025E is 1.383 billion yuan, with a corresponding PE ratio of 20 [4] - The company aims for a gross margin of 5.6% in 2025E, with an ROE of 12.6% [4]

Core Insights - Shentong Express has reported significant growth in its core operating data for the first half of 2025, achieving a business volume of 12.348 billion parcels, a year-on-year increase of 20.73%, surpassing industry growth rates [1] - The company generated operating revenue of 25.025 billion yuan, reflecting a year-on-year growth of 16.02%, and net profit attributable to shareholders reached 453 million yuan, up 3.73% [1] - Market share has increased to 12.91%, marking a 0.15 percentage point rise compared to the previous year, continuing a trend of steady growth [1] Digital Intelligence Strategy - The robust performance is attributed to the successful implementation of a digital intelligence strategy, with a focus on "digital intelligence + experience" as key competitive advantages [2] - The company has developed a digital twin platform called "Visible Kunlun," which enables 100% visual tracking of parcels throughout the delivery process, enhancing operational precision and response speed [2] - In the first half of 2025, Shentong Express invested in 514 automated sorting devices, a year-on-year increase of over 21.23%, and added 224 automated devices at terminal points, with a total investment of approximately 184 million yuan [2] - The company aims to achieve a daily throughput capacity of 90 million parcels by the end of 2025 [2] Flexible Service Upgrades - Beyond traditional e-commerce growth, Shentong Express is expanding its second growth curve through "differentiated products + flexible services," providing customized solutions for over 40 industries [3] - The number of large customer collaborations has increased by 80% year-on-year, and the scale of platform scattered orders has nearly doubled [3] - The supply chain service "Warehouse Alliance" has expanded to cover over 150 warehouses, achieving next-day delivery capabilities in 70% of prefecture-level cities [3] - The company's fulfillment of orders in remote areas has exceeded 100 million parcels, with a year-on-year growth of over 120% [3] Future Growth Potential - With the continuous enhancement of "digital intelligence infrastructure + flexible service capabilities," Shentong Express is positioned to capture greater growth opportunities during a critical phase of industry restructuring [4]