STO(SZ:002468) CSC SECURITIES (HK) LTD·2025-10-29 02:17Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside of 15% to 35% [3][9]. Core Insights - The company reported a revenue of 38.57 billion RMB for the first three quarters of 2025, reflecting a year-over-year increase of 15.17%. The net profit attributable to shareholders was 756 million RMB, up 15.81% year-over-year [4][6]. - In Q3 alone, the company achieved a revenue of 13.55 billion RMB, a 13.62% increase year-over-year, and a net profit of 302 million RMB, which is a 40.32% increase year-over-year [4][6]. - The company has successfully exited a prolonged price-cutting cycle, with the average revenue per package increasing to 2.05 RMB, a year-over-year rise of 2.15% [6]. Summary by Sections Company Overview - The company operates primarily in the transportation sector, with a market capitalization of 22.375 billion RMB and a current share price of 15.25 RMB [1]. Financial Performance - The company’s gross margin for the first three quarters of 2025 was 5.68%, with a slight decrease of 0.14 percentage points year-over-year. However, Q3 gross margin improved to 6.18%, an increase of 0.74 percentage points year-over-year [6]. - The net profit margin for the first three quarters was 1.97%, up 0.06 percentage points year-over-year, while Q3 net profit margin was 2.38%, an increase of 0.69 percentage points year-over-year [6]. Future Outlook - The report anticipates continued growth in single-package revenue, driven by industry price stabilization and the company's strategic acquisition of Daniao Logistics, which enhances its service offerings [6]. - Profit forecasts have been revised upwards, with expected net profits of 1.4 billion RMB, 2 billion RMB, and 2.2 billion RMB for 2025, 2026, and 2027 respectively, reflecting year-over-year growth rates of 33%, 42%, and 14% [6][8].