STO(002468) 群益证券·2024-04-25 08:30Investment Rating - The report assigns a "Buy" rating for the company with a target price of 11 CNY [1]. Core Insights - The company has experienced rapid growth in parcel volume and a quarterly recovery in gross margin, achieving a revenue of 40.92 billion CNY in 2023, representing a year-over-year increase of 18.4% [1]. - The company implemented a price reduction strategy to capture market share, resulting in a significant increase in parcel volume, projected to reach 175.1 billion parcels in 2023, a year-over-year growth of 35.2% [1]. - The gross margin for 2023 was reported at 4.2%, showing a slight decrease from the previous year, but with a recovery trend observed in the latter quarters [1]. Financial Performance Summary - The company achieved a net profit of 3.4 billion CNY in 2023, reflecting a year-over-year increase of 20.8% [1]. - Revenue for Q4 2023 was 12.1 billion CNY, with a year-over-year growth of 55.9%, while Q1 2024 revenue reached 10.13 billion CNY, up 21.5% year-over-year [1]. - The projected net profit for 2024 is expected to be 7.86 billion CNY, with an EPS of 0.51 CNY, indicating a strong recovery and growth trajectory [9]. Market Position and Strategy - The company has increased its market share by 1.55 percentage points to 13.3%, outperforming competitors such as YTO Express and Yunda Express [1]. - The company is focusing on enhancing digital management and optimizing transportation routes, which is expected to further reduce costs and improve profitability [1]. - The report highlights the company's commitment to investing in automated sorting facilities, which has led to a 26% year-over-year increase in daily capacity [1].