DEPPON(SH:603056) Huachuang Securities·2024-08-17 15:06Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [18][19]. Core Insights - The company achieved a net profit attributable to shareholders of 333 million yuan in H1 2024, representing a year-on-year increase of 37.1% [1]. - Revenue for H1 2024 reached 18.45 billion yuan, up 17.5% year-on-year, with Q2 revenue at 9.15 billion yuan, reflecting a 10.6% increase [1]. - The gross profit for H1 2024 was 1.41 billion yuan, with a gross margin of 7.6%, down 1.3 percentage points year-on-year [1]. - The company continues to enhance its collaboration with JD Logistics, leading to improved operational synergies [1]. Financial Performance Summary - Revenue Growth: H1 2024 revenue was 18.45 billion yuan, a 17.5% increase year-on-year, with Q2 showing a 10.6% growth [1]. - Net Profit: The net profit attributable to shareholders for H1 2024 was 333 million yuan, a 37.1% increase year-on-year, with Q2 profit at 240 million yuan, up 41.1% [1]. - Cost Management: The company reported a total operating cost of 17.04 billion yuan in H1 2024, with significant increases in transportation costs by 54.2% year-on-year [1]. - Business Segmentation: The express delivery business generated 1.07 billion yuan in revenue, down 23.9% year-on-year, while the fast delivery business saw a 21.1% increase in revenue to 16.64 billion yuan [1]. Future Earnings Forecast - The report adjusts the earnings forecast for 2024-2026 to 1.01 billion, 1.22 billion, and 1.45 billion yuan respectively, with corresponding EPS of 0.98, 1.19, and 1.41 yuan [1][2]. - The target price is set at 17.8 yuan, suggesting a potential upside of 33% from the current price of 13.39 yuan [3]. Operational Improvements - The company has optimized its logistics network, reducing the number of operating points to 7,956, maintaining a rural coverage rate of 93.7% [1]. - The integration with JD Logistics is expected to enhance service efficiency and customer satisfaction, as evidenced by a 43.6% reduction in customer complaints [1]. Market Position - The company holds a total market capitalization of approximately 137.51 billion yuan, with a total share capital of 1.03 billion shares [3]. - The asset-liability ratio stands at 52.59%, indicating a moderate level of financial leverage [3]. Valuation Metrics - The report provides a projected PE ratio of 14, 11, and 10 for the years 2024, 2025, and 2026 respectively, reflecting a positive outlook on the company's profitability [2][10].