DEPPON(SH:603056) Huachuang Securities·2024-04-29 00:02Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 22.7 yuan, indicating a potential upside of 37% from the current price [10][23]. Core Insights - The company achieved a revenue of 36.28 billion yuan in 2023, representing a year-on-year growth of 16%. The revenue for Q4 2023 and Q1 2024 was 10.84 billion and 9.3 billion yuan, respectively, with year-on-year growth rates of 26% and 25% [1][10]. - The gross profit for 2023 was 3.1 billion yuan, down 3% year-on-year, with a gross margin of 8.6%, a decrease of 1.6 percentage points. The gross profit for Q4 2023 and Q1 2024 was 0.95 billion and 0.6 billion yuan, with year-on-year growth rates of 63% and 8% [1][10]. - The net profit attributable to shareholders for 2023 was 750 million yuan, up 13% year-on-year, while the non-recurring profit was 570 million yuan, up 77% year-on-year [1][10]. Business Segmentation - The express delivery business is the core segment, generating 32.3 billion yuan in revenue in 2023, accounting for 89% of total revenue, with a year-on-year growth of 18%. The courier business generated 2.73 billion yuan, accounting for 7.5% of total revenue, down 11% year-on-year [1][10]. - The company optimized its cost structure, with total operating costs of 33.2 billion yuan in 2023. Labor costs, transportation costs, rent, and depreciation accounted for 15.1 billion, 13.3 billion, 1.8 billion, and 1.1 billion yuan, respectively, with year-on-year increases of 6.8%, 46%, 8.8%, and decreases of 4.6% and 11.6% [1][10]. Logistics Network Development - The company strengthened its collaboration with JD Logistics, acquiring assets from 83 transfer centers to expand its express network. The expected related party transaction amount for 2024 is 7.79 billion yuan, a year-on-year increase of 140% [1][10]. - As of the end of 2023, the company had 9,194 service points, including 5,814 direct service points and 3,380 partner service points. The company operated 31,751 vehicles, with a year-on-year increase in total collection rate of 3.2 percentage points [1][10]. Profitability Forecast - The profit forecast for 2024-2025 has been slightly adjusted to 1.06 billion and 1.3 billion yuan, respectively, with an introduction of a 2026 profit forecast of 1.51 billion yuan. The corresponding EPS for these years is projected to be 1.03, 1.26, and 1.47 yuan, with PE ratios of 16, 13, and 11 times [1][10].