Core Viewpoint - Aneng Logistics (9956.HK) has delivered an unexpectedly strong performance in the first half of 2025, with growth in revenue, profit, and cargo volume, demonstrating its strategic shift from "scaling up" to "enhancing value" amidst a competitive express delivery industry [1] Performance Verification: Surpassing Expectations - Revenue for the first half of 2025 reached 5.625 billion yuan, a year-on-year increase of 6.4%, achieved on a high base from the previous year, indicating the company's resilience [2] - Total cargo volume was 6,821 thousand tons, up 6.2% year-on-year, with total ticket numbers increasing significantly by 25.2% to 90.6 million tickets, while average ticket weight decreased from 89 kg to 75 kg, reflecting an optimized cargo weight structure [2] - The proportion of e-commerce shipments has risen to 36%, showcasing Aneng's capability to meet the growing demand from the consumer end [2] Profitability: Stable and Upward - Adjusted net profit reached 476 million yuan, a 10.7% increase year-on-year, with an adjusted net profit margin of 8.5%, marking the third consecutive quarter of sequential improvement [3] - Transportation costs decreased by 11 yuan to 295 yuan per ton, benefiting from investments in new energy and intelligent driving vehicles, optimized fleet utilization, and lower oil prices [3] - The company holds a healthy net cash position of 2.18 billion yuan, with a debt-to-asset ratio of 40%, allowing for continued investment in vehicle upgrades and digitalization [3] Strategic Elevation: From Scaling Up to Enhancing Value - Aneng Logistics focuses on three core areas for future growth: products, network, and technology [4] - The "3300 product policy" continues to be a competitive advantage, with a monthly subsidy of approximately 16 million yuan, driving an 18.2% year-on-year increase in cargo volume for shipments under 300 kg [4] - The number of partners and agents has exceeded 38,000, covering 99.6% of counties and towns, enhancing service speed and customer experience [5] Technology and Brand Development - The company has added over 200 LNG and intelligent driving vehicles and implemented automated sorting lines, leading to a downward trend in unit transportation costs [6] - Digitalization efforts have reached over 70% penetration across national outlets, aiming for full coverage within the year [6] - Aneng Logistics hosted the first "Aneng ANE Logistics Festival," attracting 450 million online participants, enhancing brand recognition and social value [7] Valuation Reassessment: First Dividend Marks a New Era - Aneng Logistics announced its first cash dividend with a payout ratio of 50%, signaling a transition from a growth-focused company to one that balances value and growth [10] - The board indicated that the dividend is part of a long-term plan, enhancing investor confidence in the company's profitability [10] - The overall logistics industry is experiencing a structural improvement, with Aneng positioned to benefit from this trend [11] Market Dynamics and Future Outlook - The express delivery sector is witnessing a shift towards a more stable and profitable environment, with Aneng's differentiated product offerings and network density providing a competitive edge [12] - The company's valuation is currently at a PE of 11, significantly lower than its historical average and compared to peers, indicating potential for upward revaluation [15][17] - Aneng Logistics is seen as a "cash cow" with sustainable cash flow, combining growth potential with defensive attributes, appealing to institutional investors [18]