MILKYWAY(SH:603713) Huachuang Securities·2024-08-04 23:31Investment Rating - The report maintains a "Recommend" rating for Milestone Logistics (603713) [1] Core Views - The company's net profit attributable to the parent company in Q2 2024 reached 160 million yuan, a year-on-year increase of 9 6% [1] - The report is optimistic about the long-term development potential of hazardous chemical logistics [1] - The company's revenue for H1 2024 was 6 billion yuan, a year-on-year increase of 32 4%, with Q2 revenue at 3 1 billion yuan, up 42 2% year-on-year [1] - The gross profit margin for H1 2024 was 11 2%, a slight decrease of 0 9 percentage points year-on-year [1] Business Performance - In H1 2024, the company achieved a net profit attributable to the parent company of 310 million yuan, a year-on-year increase of 22 8%, with a non-GAAP net profit of 290 million yuan, up 19 6% year-on-year [1] - The operating cost for H1 2024 was 5 32 billion yuan, a year-on-year increase of 33 6%, with the three-fee ratio (sales + management + finance) at 3 9%, down 1 2 percentage points year-on-year [1] - The net operating cash flow for H1 2024 was -230 million yuan, compared to 590 million yuan in the same period last year [1] Business Segments - The global freight forwarding business (MGF) generated revenue of 1 61 billion yuan in H1 2024, a year-on-year increase of 47%, accounting for 27% of total revenue, with a gross profit of 170 million yuan and a gross margin of 10 8% [1] - The regional delivery business (MWT) saw revenue of 1 25 billion yuan in H1 2024, a year-on-year decrease of 3%, accounting for 21% of total revenue, with a gross profit of 250 million yuan and a gross margin of 20 2% [1] - The global mobility business (MGM) generated revenue of 460 million yuan in H1 2024, a year-on-year increase of 36%, accounting for 8% of total revenue, with a gross profit of 60 million yuan and a gross margin of 13 7% [1] - The chemical distribution business (MCD) achieved revenue of 2 66 billion yuan in H1 2024, a year-on-year increase of 48%, accounting for 44% of total revenue, with a gross profit of 180 million yuan and a gross margin of 6 7% [1] Strategic Development - The company is actively expanding its global presence, with subsidiaries in Singapore, Malaysia, and the US, and is cautiously exploring markets in Southeast Asia and North America [1] - The company is focusing on improving its business capabilities, including railway, cross-border trucking, express delivery, and LCL services, while also developing online platforms such as "Huayida," "Lingyuansu," and "Yunxiaohu" [1] Financial Forecast - The report raises the forecast for net profit attributable to the parent company for 2024-2026 to 670 million, 770 million, and 880 million yuan, respectively, with corresponding EPS of 4 05, 4 71, and 5 34 yuan, and PE ratios of 12, 10, and 9 times [1] - The target price for 2024 is set at 60 7 yuan, representing a 23% upside from the current price [1]