Shentong Express (002468) Quarterly Comment： Intensified market competition weighs on Q3 results and long-term bullish on Ali cooperation
Shentong Express (002468) Quarterly Comment: Intensified market competition weighs on Q3 results and long-term bullish on Ali cooperation
Event: Shentong Express released the third quarter report of 2019.
Operating income for the first three quarters of 2019 was 156.
5.6 billion, an annual increase of 41.
01%, net profit attributable to mother 11.
0.6 billion, down 31 each year.
35%, deducting non-net profit 10.
49 trillion, down 16 a year.
2019Q3 revenue 57.
85 ppm, an increase of 29 in ten years.
67%, net profit attributable to mother 2.
73 trillion, down 63 a year.
23%, deducting non-net profit 2.
6.7 billion, an annual decrease of 38.
Opinion: Affected by the disposal of Fengchao and the intensified market competition in the same period last year, the decline in performance.
The company’s net profit attributable to its mother in the third quarter decreased by 63%.
23%, mainly due to the high base of investment income generated from disposal of Fengchao’s equity in the same period last year.
19Q3 company single ticket income 2.
8 yuan, down 13 from 18Q3.
13%, mainly due to the decrease in the weight of a single ticket.
The company’s gross profit margin for the first three quarters dropped by 5.
83pct to 11.
99%, mainly due to the incremental compensation policy of franchisees, the impact of intensified market competition.
In terms of expense ratio, the sales expense ratio increased by 0.
3pct to 0.
68%, mainly due to changes in the organizational structure and the corresponding increase in labor costs of sales staff; the management expense ratio and research and development expense ratio decreased by 0.
07pct to 2.
68%; financial expense ratio increased by 0.
75pct to -0.
25%, mainly due to the decrease in interest income.
Increase capital 南宁桑拿 expenditure in the third quarter to ensure service quality during peak seasons.
The “Double Eleven” pre-sale activity has been launched, the industry has entered the traditional express delivery season, and the market is moving towards price increases. The company purchased and built fixed assets, intangible assets and other long-term assets in cash in the first three quarters.
07 trillion, including 9 in the third quarter.
07 trillion US dollars, capital expenditure increased in size, the company’s production capacity increased, the capacity increase can effectively undertake the express delivery business in the peak season to ensure service quality.
Ali plans to purchase more Shentong Express, and the future is promising.
Alibaba plans to purchase 31 more listed companies.
349% equity, acquired within three years 北京夜网 from December 28, 2019. After all exercise, Alibaba will hold 46% equity of listed companies.Alibaba’s purchase of the company’s equity will help listed companies complete the restructuring and upgrading of their main business as soon as possible, and will help the long-term profitability of listed companies.
Investment strategy: Due to the intensified market competition, we lowered the company’s profit forecast and expect the net profit to be returned to the mother in 2019-202117.
6.4 billion, 21.
8.6 billion, 26.
52 ppm, an increase of -13 in ten years.
3%, maintain “Buy” rating.
Risk reminder: risks caused by market competition, Pinduoduo and other e-commerce growth are less than expected risks, and the cooperation process is less than expected risks.