DEPPON(SH:603056) SINOLINK SECURITIES·2024-04-28 03:00Investment Rating - The report maintains a "Buy" rating for the company [2][15]. Core Insights - The company's revenue continues to grow, primarily driven by the express delivery business, with a significant increase in the freight business [2]. - The gross profit margin has decreased year-on-year, while the expense ratio has also declined, indicating effective cost control measures [2]. - Profitability is expected to improve in the future due to significant cost management efforts [2]. Revenue and Profitability Analysis - In 2023, the company achieved a revenue of 36.28 billion yuan, a year-on-year increase of 15.6%, and a net profit attributable to shareholders of 1.33 billion yuan, up 5.7% [18]. - The express delivery business generated a revenue of 2.728 billion yuan in 2023, down 11.22% year-on-year, while the freight business revenue reached 32.28 billion yuan, up 18.2% [2]. - The company forecasts net profits of 1.11 billion yuan for 2024, 1.37 billion yuan for 2025, and 1.65 billion yuan for 2026 [2]. Cost Management and Efficiency - The company has effectively reduced labor costs, which now account for 3.42 percentage points less of revenue, due to optimized personnel deployment and increased automation [2]. - Depreciation and amortization costs have also decreased as the long-term asset layout was completed in 2022, leading to stable expenses moving forward [2]. Future Outlook - The report anticipates continued growth in the freight business, with a projected revenue increase of 25.3% in Q1 2024 [2]. - The company is expected to maintain a positive trajectory in profitability, with net profit forecasts reflecting a steady increase over the next few years [2].