Investment Rating - The investment rating for the company is "Buy" (maintained) for both HK and CH shares [8] Core Views - The company is focusing on operational activation to drive high growth in time-sensitive deliveries, with operational model transformation and network optimization enhancing efficiency and reducing costs [1] - The company aims to continue its initiatives in multi-network integration, AI empowerment, and automation in transfer stations to further reduce costs in 2025 [1] - The international business is expected to benefit from the trend of Chinese manufacturing companies expanding overseas, positioning the company as a leading international logistics provider [4] Summary by Sections Domestic Operations - The company has seen significant growth in delivery volumes, with year-on-year increases of 18.7%, 25.4%, and 30.0% for January-February, March, and April 2025 respectively [2] - The average delivery price has decreased, with year-on-year declines of 9.6%, 10.5%, and 13.9% for the same periods [2] - The revenue growth in express logistics for April was 11.8%, outpacing the industry average of 10.8% [2] Cost Optimization - In the first quarter, the company achieved a structural cost reduction, with gross margin increasing by 0.1 percentage points to 13.3% and gross profit rising by 8.0% to 9.29 billion RMB [3] - The company has invested over 800 unmanned vehicles and established the industry's first unmanned transfer center, which is expected to enhance profitability through ongoing cost reduction initiatives [3] International Business - From January to April, the revenue from supply chain and international business reached approximately 22.41 billion RMB, a year-on-year increase of 11.9%, which is faster than the express logistics business growth of 8.3% [4] - The company is well-positioned to benefit from the rapid growth of the logistics market in Asia due to the regionalization of trade and the expansion of Chinese enterprises [4] Profit Forecast and Valuation - The company maintains its net profit forecasts for 2025-2027 at 11.80 billion, 14.18 billion, and 16.03 billion RMB respectively, with corresponding EBITDA of 34.90 billion, 38.53 billion, and 41.31 billion RMB [5] - The target prices are set at 51.10 RMB for A shares and 52.80 HKD for H shares, with respective EV/EBITDA multiples of 8.0x and 7.7x for 2025 [5]