Yuantong Express (600233): Costs dropped significantly in 2018

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Yuantong Express (600233): Costs dropped significantly in 2018

Key Investment Events: The company released its 2018 annual report with 2018 revenue of 274.

650,000 yuan, +37 a year.

45%; net profit attributable to mother 19.

40,000 yuan, +31 a year.

97%; net profit of non-attributed mothers is 18.

380,000 yuan, ten years +34.

11%.

The company released the first quarter report of 2019, and its revenue for the first quarter of 2019 was 64.

44 trillion, +20 for ten years.

65%; net profit attributable to mother 3.

65 trillion, +15 for ten years.

66%; deduct non-attributed net profit 3.

57 trillion, +19 for ten years.

41%.

Opinion: The optimization of network management drives the continuous growth of business volume growth.

The company’s business volume growth in the four quarters of 2018 was 21 respectively.

17%, 27.

09%, 32.

10%, 34.

75%, showing a seasonal upward trend.

Since 18 years, through the company’s continuous increase in network control, the mainline vehicle ownership rate has been increased (5100 mainline vehicles, of which 1199 have been owned), the service quality has been improved, the company’s business growth rate has continued to rise, and the effective value rate has continued to decrease.

As the company continues to strengthen management and reduce costs, it is expected that the company has room for improvement in the future.

The reduction in transit costs was significant, and the profit level in the fourth quarter exceeded expectations.

In 2018, the company’s optimization of the network visually represented a reduction in the cost of transit conversion and a single ticket transportation cost of 0.

80 yuan (-14.

54%), the single ticket outlets transfer fee 0.

40 (-22.

04%), single ticket center operation cost is 0.

44 yuan (-6.

65%).

Looking at the second half of the year, the transportation cost of a single ticket (0 in the first half of the year).

84 yuan), single ticket outlets transfer fee (0 in the first half of the year.

(50 yuan) also decreased significantly in the second half of the year, indicating that the company’s business volume growth rate has picked up, and the strengthening of network management has shown a scale effect.

Driven by this, the company deducted non-net profit 6 in the fourth quarter.

3.3 billion US dollars, an annual increase of 67.

05%, far exceeding the growth rate of business volume.

Capital expenditure remained high.

In 2018, the company’s fixed assets reached 5.3 billion yuan, a significant increase of 80 throughout the year.73%.

Cash paid for construction of fixed assets, intangible assets from 17 in 2017.

14 trillion increased to 34 in 2018.

8.3 billion.

Mainly due to the commissioning of the company’s transshipment center and the addition of aircraft and vehicles, the company’s network construction maintained a high level.

A new phase of equity incentive plan was launched, mergers and adjustments, and corporate governance continued to improve.

The company launched a new phase of equity incentive plan, and plans to grant 543 shares to 284 incentive targets (replacement of core business personnel, technical staff and key employees).

110,000 shares at a grant price of 6.

89 yuan / share, the evaluation target is: in 2019 and 2020, the company’s net profit deducted from non-attribution will be no less than 22 trillion and 24 trillion.

In addition, the company announced that the secretary-general made adjustments, and Yu Huiyi resigned as president and still serves as chairman of the board; Pan Shuimiao will serve as president of the company and former vice president Deng Xiaobo resigned.

The above actions indicate that the company is still continuously improving its governance structure and management level.

In Q1 2019, the profit of the freight forwarding business was flat, financial expenses increased, and single profit declined.

From the company’s disclosed monthly data, the company’s courier business revenue increased 24 in the first quarter.

55%, and the company ‘s overall revenue growth was 20.

65%, we judge that this is because the freight forwarding business was affected by the sluggish international trade in the first quarter. It is estimated that the profit level of the freight forwarding sector should be the same as last year.

In addition, the financial expenses in the first quarter increased from more than 7 million last year to more than 23 million this year, mainly because the company issued convertible bonds at the end of last year.

On the whole, the company’s non-net profit for the one-piece deduction for the first quarter was 0 from the same period last year.

25 yuan this year 0.

21 yuan, our judgment is related to the industry’s intensified price competition this year.

It is expected that the company will continue to improve its management level and strengthen its soft power.

As a traditional leader in the express 深圳丝袜会所 delivery industry, the company has an integrated network, customer base, and unique resources for the aviation network.

Based on the substantial catch-up of network construction in 2018 and the enhancement of hard power, if the soft power of internal management can be continuously improved, the company will usher in a rebound in share and reputation.

We adjusted the company’s profit forecast and estimated that the net profit attributable to the mother in 19, 20 and 21 will be 23 respectively.

28, 28.

10, 34.

52 trillion, the corresponding EPS is 0.

82, 0.

99, 1.

22 yuan, corresponding to the closing price of PE on April 24 were 16 respectively.

9X, 14.

0X, 11.

4 times.

Maintain the level of “prudent overweight”.

Risk reminder: The demand of the express delivery industry is not up to expectations, the price of the express delivery industry exceeds expectations, and the company’s capital expenditure exceeds expectations