Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 13.20 [7][8]. Core Views - The company has achieved rapid growth in scale and improved net profit margins due to increased penetration in non-food delivery scenarios, active expansion into lower-tier markets, and the realization of scale and network effects driven by technology [2][3]. - The company has been included in the Hang Seng Composite Index and the Hong Kong Stock Connect, which is expected to enhance stock liquidity [2]. - The company has launched the "SoFast" brand in the Hong Kong instant delivery market, although initial operational costs may increase [2]. Financial Performance Summary - For the first half of 2024, the company reported total revenue of RMB 6.9 billion, a year-on-year increase of 20%, with order volume growing over 30% [4]. - Gross profit increased by 23% to RMB 470 million, with a gross margin improvement of 0.2 percentage points to 6.9% [4]. - The net profit attributable to the parent company grew by 105% to RMB 62 million, with a net profit margin increase of 0.4 percentage points to 0.9% [4]. - The company’s operating cash flow increased by 189% to RMB 99 million [4]. Revenue Projections - The company’s revenue is projected to grow from RMB 12.39 billion in 2023 to RMB 14.84 billion in 2024, reflecting a growth rate of 19.82% [6][15]. - The net profit attributable to the parent company is expected to increase significantly from RMB 50.6 million in 2023 to RMB 159.95 million in 2024, representing a growth of 216.14% [6][15]. Market Trends - The demand in lower-tier markets is growing rapidly, with county-level income increasing by 51% year-on-year in the first half of 2024 [3]. - The online and offline integration is enhancing the penetration of instant retail markets, with significant growth in categories such as tea delivery, which saw a 60% increase in revenue [3]. Valuation Methodology - The target price of HKD 13.20 is based on a segmental price-to-sales (PS) valuation method, with the same valuation as previously estimated [11]. - The company’s city delivery service is valued at HKD 8.9 based on 0.84x 2024E PS, reflecting a 20% premium over the median valuation of comparable companies [11]. Key Financial Metrics - The company’s earnings per share (EPS) is projected to improve from RMB 0.06 in 2023 to RMB 0.17 in 2024 [6][15]. - The return on equity (ROE) is expected to rise from 1.69% in 2023 to 5.24% in 2024 [6][15].
顺丰同城：1H规模盈利改善，入通或提升关注度