China Express(SZ:002928) Xin Lang Cai Jing·2025-08-31 12:43Core Viewpoint - The company reported a strong performance in H1 2025, with revenue and net profit showing significant year-on-year growth, indicating resilience in the face of industry challenges [1][2]. Financial Performance - In H1 2025, the company achieved operating revenue of 3.61 billion yuan, a year-on-year increase of 12%, and a net profit attributable to shareholders of 250 million yuan, compared to 26 million yuan in H1 2024 [1]. - The Q2 2025 revenue was 1.84 billion yuan, up 15% year-on-year, with a net profit of 170 million yuan, significantly higher than the 1 million yuan in Q2 2024 [1]. - The company’s passenger kilometer revenue remained stable at 0.52 yuan, benefiting from new capacity procurement contracts and improved demand in the tourism sector [1]. Cost Management - The unit cost continued to decline, down 7.4% year-on-year in H1 2025, aided by increased utilization rates and lower fuel costs [2]. - The unit fuel cost decreased by 10% in Q1 and 23% in Q2 year-on-year, while non-fuel costs showed mixed results [2]. - The company is expanding its coverage of remote routes, which is expected to enhance unit subsidy income due to new regulations increasing subsidies for these routes [2]. Accounts Receivable and Impairment - The company reversed 5 million yuan in impairment losses on accounts receivable, indicating improved cash flow from downstream customers, but also made a provision of about 12 million yuan based on aging analysis [3]. - As of June 30, 2025, the company had approximately 320 million yuan in bad debt provisions, highlighting the need to monitor potential impacts on profitability [3]. Investment Outlook - The company is well-positioned to capitalize on growth in the regional market, supported by government purchasing models that stabilize pricing amid a declining industry environment [3]. - The forecast for net profit attributable to shareholders has been raised to 620 million yuan, 850 million yuan, and 1.13 billion yuan for 2025-2027, respectively, reflecting a positive outlook [3].