YTO(SH:600233) HTSC·2025-10-29 08:50Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 20.40 [1][5]. Core Views - The company has demonstrated better-than-industry performance in terms of volume and pricing in Q3 2025, achieving a revenue of RMB 18.272 billion, a year-on-year increase of 8.73% [1][2]. - The company is expected to benefit from industry price recovery and seasonal demand in Q4 2025, supported by its strong service quality and operational efficiency [1][4]. Summary by Sections Financial Performance - In Q3 2025, the company reported a net profit of RMB 1.046 billion, up 10.97% year-on-year, and a total revenue of RMB 54.156 billion for the first three quarters, reflecting a 9.69% year-on-year increase [1][2]. - The gross margin improved to 9.4%, with a year-on-year increase of 0.99 percentage points [3]. Business Operations - The company's express delivery volume grew by 15.0% year-on-year, surpassing the industry average, while the average price per package decreased by 2.4% year-on-year, indicating effective cost management [2][3]. - The company is actively developing its international logistics network, having opened over 150 quality freight routes [4]. Profit Forecast and Valuation - The net profit forecast for 2025-2027 has been adjusted upwards to RMB 4.176 billion, RMB 4.845 billion, and RMB 5.340 billion, respectively, with a compound annual growth rate of 10.00% [5][11]. - The company is assigned a PE ratio of 16.7 times for 2025, reflecting a premium due to its superior operational performance [5].