DEPPON(SH:603056) Changjiang Securities·2025-05-18 12:14Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - In 2024, the company achieved a revenue of 40.36 billion yuan, representing a year-on-year growth of 11.3%, with net profit attributable to shareholders increasing by 15.4% to 0.86 billion yuan [4][10]. - The first quarter of 2025 saw a revenue increase of 12.0% year-on-year, but net profit turned negative at -0.07 billion yuan due to product structure adjustments [2][4]. - The company is viewed positively for its potential to increase market share and benefit from the integration with JD Logistics' express business [2][10]. Summary by Sections Revenue and Profitability - In 2024, the company reported a revenue of 40.36 billion yuan, with a breakdown showing express and other business revenues growing by 13.0% and 34.6%, respectively, while express delivery revenue declined by 19.7% [2][10]. - The gross profit margin decreased by 0.9 percentage points due to a shift towards higher freight, lower labor cost businesses, and increased investment in transportation resources [10]. - The fourth quarter of 2024 saw a revenue of 12.07 billion yuan, with a net profit of 0.34 billion yuan, marking a 25.2% increase year-on-year [4][10]. Cost Management - The company effectively managed its expenses, with total expenses decreasing by 7.1% year-on-year, largely due to a significant reduction in management expenses by 20.4% [10]. - Despite a decrease in government subsidies and tax benefits, the company managed to maintain a stable profit growth [10]. Future Outlook - The company is expected to continue increasing its market share as a rare full-network express enterprise, with anticipated net profits of 0.90 billion yuan, 1.02 billion yuan, and 1.15 billion yuan for 2025, 2026, and 2027, respectively [10]. - The integration with JD Logistics is expected to enhance operational efficiency and profitability in the long term [10].