YUNDA Corp.(SZ:002120) Xinda Securities·2024-05-23 08:30Investment Rating - The report assigns a "Buy" rating to the company [4][6]. Core Viewpoints - The company is positioned as a relatively neutral leader in the domestic e-commerce express delivery sector, with a focus on improving operational efficiency and package volume growth [11][12]. - The report anticipates a dual turning point in operations and package volume, driven by governance improvements and enhanced network cohesion [11][12]. - The competitive landscape is expected to stabilize, creating favorable conditions for steady development in the industry [4][11]. Summary by Sections 1. Company Overview - The company, Yunda Express, was established in 1999 and became the first A-share express delivery company with 100% self-operated transfer centers. It has a strong focus on domestic e-commerce logistics, with express delivery revenue accounting for 96.2% of total revenue in 2023 [4][11][12]. 2. Industry Competitive Landscape - The report outlines the evolution of price competition in the express delivery sector, transitioning from small players to leading companies, and now to regulatory oversight, which has improved the competitive order [19][21]. - The new regulatory framework aims to enhance the quality of development in the express delivery industry, with expectations for stable pricing in 2024 [22][23]. 3. Governance and Network Management - The company has implemented a stock option incentive plan to improve governance and align management interests with performance targets, including net profit goals for 2024 and 2025 [30][31]. - The company has focused on optimizing the interests of franchisees and enhancing network cohesion through various reforms, including pricing strategies and digital management tools [34][35]. 4. Financial Forecast and Valuation - The report projects net profits for 2024, 2025, and 2026 to be 2.285 billion, 2.842 billion, and 3.385 billion yuan respectively, with corresponding P/E ratios of 12, 10, and 8 [6][7]. - The valuation is considered to have adjusted adequately, with significant upside potential due to operational improvements [6][11].