DEPPON(603056) ZHESHANG SECURITIES·2024-12-01 05:23Investment Rating - The investment rating for the company is upgraded to "Buy" [4][7]. Core Insights - The demand for large-item transportation is expected to recover, driven by the government's policies promoting the replacement of old appliances, which have shown significant effects on sales [1]. - The collaboration with JD Logistics is progressing steadily, with plans to enhance cooperation in the home appliance and home improvement sectors, which is anticipated to contribute to revenue growth [2]. - Shareholder confidence is highlighted by JD Zhaofeng's plan to increase its stake in the company, indicating strong support from major stakeholders [3]. Summary by Sections Demand Recovery - The government has implemented policies to support the replacement of old appliances, with subsidies ranging from 15% to 20% for eligible products, leading to a notable increase in sales [1]. - As of November 8, 2024, over 20.25 million consumers purchased 30.45 million units of major appliances, generating sales of 137.79 billion yuan [1]. Strategic Partnerships - Since JD Logistics' acquisition of the company in September 2022, the partnership has been advancing, with plans to acquire assets from JD Logistics to enhance operational efficiency [2]. - The company aims to focus on increasing revenue and volume in the second half of 2024, supported by refined internal management to improve cost efficiency [2]. Financial Projections - The company is expected to see a recovery in performance, with projected net profits of 862 million yuan in 2024, 1.065 billion yuan in 2025, and 1.287 billion yuan in 2026, reflecting a growth rate of 15.61%, 23.51%, and 20.90% respectively [4][6]. - The projected P/E ratios for the same years are 17.6, 14.3, and 11.8, indicating an attractive valuation [4][6].