CTS Logistics(603128)2024-10-27 15:07Investment Rating - The report maintains a "Recommended" rating for the company, with expected earnings per share (EPS) of 0.52, 0.58, and 0.65 for the years 2024, 2025, and 2026 respectively, corresponding to price-to-earnings (PE) ratios of 11.46X, 10.26X, and 9.22X [2]. Core Insights - The company achieved a record high revenue of 144.17 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 38.64% compared to the same period in 2023 [2]. - The net profit attributable to shareholders for the same period was 4.72 billion yuan, a decrease of 16.31% year-on-year [2]. - The gross profit margin for the first three quarters of 2024 was 10.88%, slightly down from 11.76% in the mid-year report [2]. - The company has successfully implemented a direct customer contract model, benefiting from price elasticity in freight rates, leading to a significant increase in quarterly revenue [2]. - The company has made significant strides in cross-border e-commerce logistics, with expectations for accelerated growth driven by domestic brands expanding overseas [2]. Financial Performance Summary - For the first three quarters of 2024, the company reported operating revenues of 144.17 billion yuan, with quarterly revenues of 38.83 billion yuan, 47.17 billion yuan, and 58.17 billion yuan for Q1, Q2, and Q3 respectively, showing year-on-year growth rates of 31.67%, 30.61%, and 51.54% [2]. - The operating costs for the same period were 138.26 billion yuan, reflecting a year-on-year increase of 42.11% [2]. - The company has maintained a focus on cost control and efficiency improvements, with sales expenses of 5.39 billion yuan, management expenses of 3.71 billion yuan, and R&D expenses of 0.13 billion yuan for the first three quarters of 2024 [2]. - The company has declared a mid-year cash dividend with a payout ratio of 50.11%, distributing 1.16 yuan per share to shareholders [2].