MILKYWAY(SH:603713) SINOLINK SECURITIES·2025-08-14 15:28Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company achieved a revenue of 7.04 billion RMB in H1 2025, representing a year-on-year increase of 17.4%, and a net profit attributable to shareholders of 350 million RMB, up 13% year-on-year [2] - In Q2 2025, the company reported a revenue of 3.69 billion RMB, a growth of 19.3% year-on-year, and a net profit of 180 million RMB, which is a 12.3% increase year-on-year [2] - The company overcame downward pressure on freight rates, with the CCFI index averaging 1162 in Q2 2025, down 19% year-on-year, yet still achieved revenue growth due to increased business volume [2] - The company is focusing on smart supply chain services and enhancing chemical distribution services, acquiring several key clients in the new energy, chemical, semiconductor, and pharmaceutical sectors [2] - The company has maintained a warehouse asset utilization rate of 85% and is progressing well with self-built bases in Zhanjiang and Huizhou [2][3] - The gross profit margin improved to 11.3% in Q2 2025, up 0.4 percentage points year-on-year, attributed to a lower decline in freight forwarding gross profit per container compared to freight rate declines [3] - The company completed equity investments totaling 183 million RMB, primarily in the chemical new materials and logistics sectors, enhancing its supply chain service capabilities [3] Summary by Sections Performance - H1 2025 revenue: 7.04 billion RMB, up 17.4% YoY - H1 2025 net profit: 350 million RMB, up 13% YoY - Q2 2025 revenue: 3.69 billion RMB, up 19.3% YoY - Q2 2025 net profit: 180 million RMB, up 12.3% YoY [2] Operational Analysis - Q2 2025 CCFI index: 1162, down 19% YoY - Revenue growth driven by increased business volume despite freight rate pressures - Focus on smart supply chain and chemical distribution services with new key clients [2][3] Profitability and Expenses - Q2 2025 gross profit margin: 11.3%, up 0.4 percentage points YoY - Q2 2025 expense ratio: 4.5%, up 0.2 percentage points YoY - Q2 2025 net profit margin: 4.9%, down 0.3 percentage points YoY [3] Profit Forecast, Valuation, and Rating - Revised net profit forecasts for 2025-2027: 650 million RMB, 800 million RMB, 950 million RMB - Maintained "Buy" rating [4]