Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [11][13]. Core Viewpoints - The company is positioned as a leading third-party instant delivery platform in China, benefiting from the rapid growth of instant retail and the increasing demand for delivery services [4][11]. - The company's unique market positioning and service model have created a scarcity barrier in delivery capacity, which is expected to drive profitability as order volumes and rider efficiency improve [4][11]. Summary by Sections Company Overview - The company, Shunfeng Tongcheng, is the largest third-party instant delivery platform in China, providing a flexible delivery network for various consumer needs [8][18]. - The main business segments include delivery services for merchants (42% of revenue), personal errands (15%), and express collection and delivery services (42%) [8][18]. Instant Retail Growth - Instant retail is experiencing explosive growth, driven by a shift in consumer behavior towards convenience and immediate consumption [9][39]. - The market is expected to expand significantly, with projections indicating that the instant retail market could exceed 700 billion yuan by 2025 [52]. Delivery Infrastructure - Instant delivery serves as the foundational infrastructure for instant retail, with a focus on building a robust rider network to meet increasing order volumes [10][74]. - The company employs a "quasi-direct" management model for riders, ensuring high service quality and operational efficiency [10][74]. Financial Performance - The company achieved its first annual profit in 2023, with net profit expected to double to 1.3 billion yuan in 2024 [11][35]. - Revenue growth is driven by a compound annual growth rate (CAGR) of 24.4% from 2021 to 2024, with significant contributions from all business segments [35][36]. Market Positioning - The company maintains a neutral market position, allowing it to serve a wide range of clients without favoring specific channels [11][18]. - Strong collaboration with the parent company, Shunfeng Group, enhances operational efficiency and cost reduction in last-mile delivery [11][18].