DEPPON(SH:603056)2024-05-06 12:30Investment Rating - The report maintains a "Outperform" rating for the company [6][13]. Core Insights - The company reported a total revenue growth of 15.6% year-on-year to RMB 36.3 billion in 2023, with a net profit growth of 13.3% to RMB 746 million. In Q1 2024, total revenue increased by 25.3% year-on-year to RMB 93.0 billion, and net profit rose by 27.7% to RMB 90 million [8][13]. - The company focuses on the large parcel delivery market, positioning itself as a comprehensive logistics service provider for goods weighing over 3 kg. The express delivery business has seen a significant decline, while the fast delivery business has grown by 29.6% year-on-year [8][29]. - The company is enhancing its operational efficiency through refined management and cost control measures, resulting in a 7.4 percentage point decrease in labor costs as a percentage of revenue [8][29]. Financial Summary - The company is projected to achieve revenues of RMB 40.5 billion in 2024 and RMB 45.2 billion in 2025, with net profits expected to reach RMB 1.1 billion and RMB 1.3 billion respectively [13][28]. - The report indicates a net profit growth rate of 43.9% for 2024 and 25.7% for 2025, with a projected PE ratio of 16 times for 2024 [13][28]. - Key financial metrics include a gross profit margin of 9.2% for 2024 and an operating profit margin of 3.3% [15][28].