Industry Overview:
From the performance of each sub sector of transportation relative to Shanghai and Shenzhen 300, the transportation sector picked up slightly this week (March 7-march 11). The express delivery sector fell 5.43% this week, with a relatively stable performance.
Express: from January to February, the express business volume increased by 19.6% year-on-year, and the single ticket price fell seasonally
JD logistics acquired deppon express, the industry concentration was further improved, and the service quality gradually became the focus of industry competition. On March 11, deppon express released several announcements, such as the “change of controlling shareholder planning control” and the “report on receipt of tender offer”. Suqian Jingdong Zhuofeng Enterprise Management Co., Ltd. (hereinafter referred to as Jingdong Zhuofeng), which is directly controlled by Jingdong Logistics Supply Chain Co., Ltd. under Jingdong Logistics, plans to spend 8.976 billion yuan Indirectly control Deppon Logistics Co.Ltd(603056) 664965% of the shares by means of “transferred shares + voting power entrustment”, and conduct the transaction in three phases. Jingdong Zhuofeng will thus trigger a comprehensive tender offer obligation. It plans to take 13.15 yuan / share as the tender offer price, and is expected to acquire Deppon Logistics Co.Ltd(603056) 277 million shares for a consideration of 3.644 billion yuan. The tender offer will terminate the listing status of Deppon Logistics Co.Ltd(603056) and JD logistics is expected to acquire Deppon Logistics Co.Ltd(603056) , which will further strengthen JD logistics service capacity and accelerate the development of integrated supply chain business at a consideration of 12.62 billion yuan.
The State Post Office announced that the express business volume increased by 49.1% year-on-year in February, and the cumulative growth rate of express pieces from January to February was 19.6%, maintaining a high-speed growth trend. According to the data of the State Post Office, in February, the business volume of national express service enterprises completed 6.91 billion pieces, a year-on-year increase of 49.7%; Business income reached 65.71 billion yuan, a year-on-year increase of 27.4%. From January to February, the business volume of national express service enterprises reached 15.69 billion, a year-on-year increase of 19.6%; Business income totaled 157.43 billion yuan, a year-on-year increase of 13.8%.
In February, the industry’s average single ticket income was about 9.51 yuan, down 14.86% year-on-year and 9.04% month on month; From January to February, the average single ticket income of the industry was 10.03 yuan, a year-on-year decrease of 4.9%, disturbed by the price factors of the Spring Festival holiday. During the Spring Festival holiday, express companies often raise prices to cope with the cost pressure caused by labor shortage and low capacity utilization. Therefore, the single ticket price will naturally fall after the Spring Festival holiday. Referring to the performance of express delivery volume in historical years, the average daily express delivery volume continues to rise after March, and express enterprises will also reduce prices from March to April to improve the capacity utilization rate in the traditional off-season. It is expected that the express price will continue to fall after March to April.
It is suggested to pay attention to S.F.Holding Co.Ltd(002352) , Zhongtong express and JD logistics. From a long-term perspective, with the transformation and upgrading of China’s manufacturing industry, leading enterprises that can provide higher quality standards and customized differentiated services will stand out.
