Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company plans to acquire 100% equity of Daniao Logistics for a cash consideration of 362 million yuan, which is expected to enhance its volume and revenue scale, pushing the company to become the third largest in the industry [2][6]. - This acquisition is seen as a model for supply-side reform in the express delivery industry and a significant step towards high-quality development [2]. - The acquisition is anticipated to leverage synergies, improve logistics capabilities, and create a differentiated competitive advantage [2]. Summary by Sections Event Description - The company’s wholly-owned subsidiary intends to acquire Daniao Logistics from its current shareholders, with a transaction price of 362 million yuan [6]. Financial Overview of Daniao Logistics - Daniao Logistics reported revenues of 12.35 billion yuan in 2024 and 2.96 billion yuan in the first four months of 2025, with net profits of 20 million yuan and a loss of 230 million yuan respectively [13]. - The acquisition is priced at a price-to-book (PB) ratio of 1.6X, which is lower than the company's PB of 2.4X, indicating a strategic acquisition at a discount [12]. Strategic Implications - The acquisition is expected to optimize the company's product structure and drive supply-side reform in the industry [12]. - Daniao Logistics' established quality logistics network is anticipated to enhance the company's service capabilities and brand influence [12]. - The company aims to tap into high-end markets and expand into new delivery scenarios, thereby enriching its product offerings [12]. Investment Recommendations - The report suggests capitalizing on the "anti-involution" opportunities, with expectations of improved profitability and valuation recovery in the sector [12]. - The company is projected to achieve net profits of 1.41 billion, 1.61 billion, and 1.83 billion yuan from 2025 to 2027, with corresponding price-to-earnings (PE) ratios of 16.5, 14.4, and 12.7 [12].

Group 1: Acquisition Overview - Shentong Express plans to acquire 100% equity of Zhejiang Daniao Logistics for RMB 362.05 million [1] - The acquisition aims to enhance the company's core competitiveness and long-term sustainable development [1][2] Group 2: Daniao Logistics Business and Performance - Daniao Logistics operates in approximately 300 cities with an average daily volume exceeding 4 million orders [2][3] - The company reported a profit of approximately RMB 20 million in 2024, but incurred losses in the first four months of 2025 due to initial growth phase and increased competition [4][5] Group 3: Strategic Rationale for Acquisition - The acquisition responds to policy directives and aims to penetrate high-end markets, enhancing the product matrix [5][6] - It is expected to optimize costs and release synergistic value, improving overall profitability [5][6] Group 4: Transaction Terms and Investor Protection - The transaction includes clauses for loss compensation during the transition period and a phased payment mechanism to protect shareholder interests [6] - The acquisition does not constitute a major asset restructuring as per regulations, ensuring fair valuation [6] Group 5: Industry Outlook and Competitive Strategy - The company supports the postal authority's stance against "involution" in the industry, focusing on quality over quantity [7][8] - The strategic shift aims to transition from price competition to value competition, with expectations of rational price recovery in peak seasons [8]