YUNDA Corp.(SZ:002120) Xinda Securities·2024-05-23 10:02Investment Rating - The report assigns a "Buy" rating for 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 [11][12]. - The industry is expected to maintain a stable competitive order, creating favorable conditions for steady development [4][19]. - The company is likely to benefit from governance improvements and enhanced network cohesion, leading to potential operational and volume inflection points [11][30]. Summary by Relevant Sections Company Overview - The company, Yunda Co., Ltd., 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][12][17]. Industry Competitive Landscape - The express delivery industry has undergone a transition from being dominated by small players to larger ones, with recent regulatory measures stabilizing the competitive environment. The new regulatory framework aims to enhance service quality and protect consumer rights [19][22][23]. - The report anticipates that price competition will stabilize, allowing for improved profitability among leading companies [21][25]. Governance and Operational Improvements - The company has implemented a stock option incentive plan to enhance governance and align management interests with company performance. The plan includes strict performance targets for net profit and business volume growth [30][31]. - The company has adopted a "whole network integration" approach to strengthen collaboration with franchisees, optimize pricing strategies, and improve package structure [34][37]. Volume Growth and Profitability - The report highlights a recovery in package volume growth, with the company outperforming the industry in terms of growth rates. The gap in growth rates between the company and the industry has narrowed significantly [11][5]. - Profit forecasts for the company indicate a net profit of 2.285 billion yuan in 2024, with expected growth in subsequent years, reflecting a positive outlook for profitability [6][7].