YTO(SH:600233) Xinda Securities·2024-08-27 13:01Investment Rating - The investment rating for the company is "Buy" [1][2]. Core Views - The company achieved a net profit attributable to shareholders of 1.988 billion yuan in the first half of 2024, representing a year-on-year increase of 6.8% [1]. - The company's express delivery business net profit increased by 13.5% to 2.097 billion yuan in the first half of 2024 [1]. - The company is expected to maintain a steady growth trajectory, with projected net profits of 4.188 billion yuan, 4.871 billion yuan, and 5.608 billion yuan for 2024, 2025, and 2026, respectively, reflecting year-on-year growth rates of 12.5%, 16.3%, and 15.1% [2][3]. Financial Performance - In the first half of 2024, the company reported a net profit of 1.988 billion yuan, with a net profit of 1.044 billion yuan in Q2, marking a 9.4% year-on-year increase [1]. - The operating cash flow for the first half of 2024 decreased by 7.8% to 2.311 billion yuan, while free cash flow saw a significant decline to -391 million yuan [1]. - The company's total revenue is projected to grow from 53.539 billion yuan in 2022 to 84.580 billion yuan in 2026, with a compound annual growth rate of approximately 12.3% [3][4]. Business Operations - The company’s express delivery volume for Q1 and Q2 of 2024 was 5.568 billion and 6.636 billion pieces, respectively, showing year-on-year growth of 24.9% and 24.8% [1]. - The cost per express delivery piece decreased by 3.5% to 2.11 yuan in the first half of 2024, with transportation costs down by 8.6% [1]. - The company is focusing on digital transformation and operational efficiency improvements to enhance the quality of its express delivery services [1]. Strategic Outlook - The company is expected to continue its international expansion strategy, with a self-owned fleet of 13 aircraft and over 140 routes opened as of June 2024 [1]. - The completion of the "Oriental Tian Di Port" in Jiaxing, Zhejiang, is anticipated in 2024, which will enhance the company's logistics network [1].