YTO(SH:600233) CSC SECURITIES (HK) LTD·2024-05-24 09:00Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance [4][5]. Core Insights - The company maintains a leading market share in the domestic express delivery sector, with a competitive landscape that is favorable compared to peers [4]. - In the first four months of 2024, the company's express delivery revenue grew by 19.2% year-over-year, outperforming competitors in terms of growth rate [4]. - The company has a higher average price per parcel at 2.39 RMB, which is less affected by the price war compared to its competitors [4]. - The overall demand in the express delivery industry remains strong, driven by increased online consumption and lower package values [4]. - The company is enhancing its service quality and pricing power through digitalization and the introduction of premium services [4]. Financial Summary - The company is projected to achieve net profits of 41.1 billion RMB, 47.6 billion RMB, and 55.3 billion RMB for the years 2024, 2025, and 2026, respectively, with year-over-year growth rates of 10%, 16%, and 16% [5][6]. - Earnings per share (EPS) are expected to be 1.2 RMB, 1.4 RMB, and 1.6 RMB for the same years, with corresponding price-to-earnings (P/E) ratios of 14x, 12x, and 11x [5][6]. - The company's revenue is forecasted to grow from 65.1 billion RMB in 2024 to 78.65 billion RMB in 2026 [6][8].