MILKYWAY(SH:603713) SINOLINK SECURITIES·2024-10-17 04:03Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a revenue of 9.55 billion RMB in the first three quarters of 2024, representing a year-on-year increase of 25.3%, and a net profit attributable to shareholders of 490 million RMB, up 21.7% year-on-year [1] - In Q3 2024, the company reported a revenue of 3.56 billion RMB, a year-on-year growth of 14.9%, and a net profit of 180 million RMB, reflecting a 19.9% increase year-on-year [1] - The growth in revenue is attributed to the expansion of freight forwarding business, new warehouse ramp-up, and consolidation of acquired companies [1] Summary by Sections Performance Analysis - The freight forwarding business saw significant growth, with the CCFI index averaging 1991, up 127.3% year-on-year, boosting the company's gross margin per container and freight forwarding revenue [1] - New warehouses in Lianyungang, Yantai, and Tianjin have quickly ramped up production, contributing to revenue growth [1] - The company has completed acquisitions, including Jiesheng Technology, which have positively impacted revenue [1] Financial Metrics - The gross margin for Q3 2024 was 10.8%, a decrease of 0.3 percentage points year-on-year [1] - The total expense ratio for Q3 2024 was 4.3%, an increase of 0.4 percentage points, with specific changes in sales, management, and financial expense ratios noted [1] - The net profit margin for Q3 2024 was 5%, an increase of 0.2 percentage points year-on-year [1] Profit Forecast and Valuation - The company’s net profit forecasts for 2024, 2025, and 2026 are 600 million RMB, 760 million RMB, and 910 million RMB, respectively [1] - The current price corresponds to PE multiples of 16x, 13x, and 10x for the respective years [1]