Investment Rating - The investment rating for the company is "Buy" (maintained) with a target price of HKD 57.90 and RMB 57.50 [7][8]. Core Views - The company reported a revenue of RMB 146.86 billion for the first half of 2025, representing a year-on-year increase of 9.3%, and a net profit attributable to shareholders of RMB 5.74 billion, up 19.4% year-on-year [1]. - The company is focusing on operational transformation and resource investment to enhance logistics volume and revenue, achieving a year-on-year growth of 31.2% in logistics volume and 13.2% in revenue in Q2 2025, both exceeding industry averages [1][2]. - The company is strategically positioning itself to capture opportunities in international logistics and supply chain restructuring, aiming to become a comprehensive logistics leader [1][3]. Domestic Operations - In the domestic market, the core express business volume increased by 25.7% to 7.85 billion parcels, while the average revenue per parcel decreased by 12.2% to RMB 14.00 [2]. - Revenue from same-city instant delivery surged by 38.9% to RMB 5.49 billion, driven by high external demand and internal efficiency improvements [2]. - The cold chain and pharmaceutical segments also saw revenue growth of 15.3% to RMB 5.84 billion [2]. International Operations - Despite external trade policy disruptions, the company's supply chain and international business revenue grew by 9.7% to RMB 34.23 billion, with a significant reduction in losses compared to the previous year [3]. - The company achieved a net profit of RMB 4.3 billion on a comparable basis, marking a year-on-year increase of 178% after excluding certain losses [3]. Management and Employee Initiatives - The company implemented a "shared growth" employee stock ownership plan, aiming to enhance operational engagement and align long-term goals among key personnel [4]. - The logistics and freight forwarding business gross profit increased by 3.9% to RMB 18.74 billion, although the gross margin declined by 0.8 percentage points to 13.1% due to increased resource investments [4]. Profit Forecast and Valuation - The company adjusted its net profit forecasts for 2025-2027 to RMB 11.78 billion, RMB 14.18 billion, and RMB 16.00 billion, respectively, with corresponding EPS estimates of RMB 2.34, RMB 2.81, and RMB 3.17 [5]. - The company is assigned an EV/EBITDA multiple of 8.0x for A-shares and 7.4x for H-shares, reflecting its competitive positioning and growth potential [5].

Investment Rating - The report maintains an "Overweight" rating for the transportation industry [7] Core Insights - The express delivery industry continues to adopt a "price for volume" strategy, with a decrease in average prices and a slowdown in volume growth since the beginning of the year [3][4] - In May, the retail sales of goods and e-commerce GMV showed positive growth, but the growth rate of express delivery volume has started to decelerate, indicating a weakening effect from promotional events [1][2] - The report recommends investing in SF Express, which maintains a positive cycle of volume and profit, and Jitu Express, which has high growth in international business [5] Summary by Sections Industry Performance - In May, retail sales increased by 6.4% year-on-year, with e-commerce GMV growing by 8.2%, indicating a strong online sales environment [2] - The express delivery volume in May grew by 17.2% year-on-year, but this was a slowdown from 19.1% in April [1][3] Company Analysis - SF Express achieved a volume growth of 31.8% in May, significantly outperforming the industry average of 17.2% [4] - Jitu Express reported a 15.9% increase in revenue for 2024, driven by strong performance in both domestic and Southeast Asian markets [24] Investment Strategy - The report suggests that despite the express delivery sector being at a historical low valuation, the long-term outlook remains positive for leading companies due to their market share aspirations and operational efficiencies [5] - Target prices are set at 51.10 CNY for SF Express and 7.50 HKD for Jitu Express, both rated as "Buy" [10][23]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company has shown significant revenue growth, with a 2024 revenue of 471.7 billion yuan, representing a 15.3% year-on-year increase, and a net profit of 10.4 billion yuan, up 205.2% year-on-year [5][11]. - In Q4 2024, the company achieved a revenue of 136.8 billion yuan, a year-on-year increase of 18.0%, and a net profit of 3.9 billion yuan, which is a remarkable growth of 223.8% [5][11]. - For Q1 2025, the company reported a revenue of 120.0 billion yuan, up 18.4% year-on-year, and a net profit of 2.4 billion yuan, reflecting a 24.0% increase [5][11]. - The company is experiencing a strong growth in parcel volume, with a 2024 parcel volume increase of 29.8% to 22.73 billion parcels, and a market share increase of 0.8 percentage points to 13.0% [11]. - The company is focusing on lean management and cost reduction strategies to counteract price competition, maintaining a stable net profit per parcel of 0.041 yuan in Q1 2025 [11]. Summary by Sections Revenue and Profit Growth - In 2024, the company achieved total revenue of 471.7 billion yuan and a net profit of 10.4 billion yuan, marking significant year-on-year growth [5][11]. - Q4 2024 revenue was 136.8 billion yuan, with a net profit of 3.9 billion yuan, showcasing strong performance [5][11]. - Q1 2025 revenue reached 120.0 billion yuan, with a net profit of 2.4 billion yuan, continuing the upward trend [5][11]. Parcel Volume and Market Position - The company reported a 29.8% increase in parcel volume in 2024, reaching 22.73 billion parcels, with a market share of 13.0% [11]. - In Q4 2024, parcel volume grew by 27.6% to 6.62 billion parcels, maintaining a competitive market position [11]. Cost Management and Profitability - The company has implemented effective cost management strategies, resulting in a decrease in per parcel costs and maintaining profitability despite competitive pressures [11]. - The net profit per parcel increased significantly in 2024, reflecting improved operational efficiency [11].