\u3000\u3 Shengda Resources Co.Ltd(000603) 056 Deppon Logistics Co.Ltd(603056) )
Deppon Logistics Co.Ltd(603056) release the annual report of 2021 and the first quarter report of 2022:
According to the company's annual report in 2021, the company achieved an operating revenue of RMB 31.359 billion in 2021, a year-on-year increase of 14.02%; Among them, the operating revenue of express delivery was 19.733 billion yuan, a year-on-year increase of 18.43%; The operating revenue of express was 10.678 billion yuan, a year-on-year increase of 6.28%. In 2021, the company realized a net profit attributable to the parent company of 143 million yuan, a decrease of 421 million yuan compared with 2020; Deducting the net profit not attributable to the parent company, the loss was 208 million yuan, a decrease of 419 million yuan compared with 2020.
In 2022, Q1 company achieved an operating revenue of 7.020 billion yuan, a year-on-year decrease of 4.75%; Among them, the operating revenue of express delivery was 4.611 billion yuan, a year-on-year increase of 1.42%; The operating revenue of express was 2.189 billion yuan, a year-on-year decrease of 15.44%. The net profit of the parent company was RMB 1.1 billion in the same period last year, with a net profit of RMB 1.12 billion in the same period last year; Deducting the net profit not attributable to the parent company, the loss was 160 million yuan, compared with 78 million yuan in the same period last year.
Key investment points:
In 2021, the company laid out long-term resources, increased production capacity and phased pressure on performance
In 2021, the company realized an operating revenue of RMB 31.359 billion, with a year-on-year increase of 14.02%. Under the background of the recovery of the epidemic in 2021 and the recovery of demand, the company has increased resource investment based on the long-term layout, with a large increase in costs and expenses, and the performance is under periodic pressure.
In 2021, the operating cost of the company was 28.028 billion yuan, a year-on-year increase of 15.36%; The labor cost was 14.030 billion yuan, a year-on-year increase of 19.24%; The transportation cost was 9.051 billion yuan, a year-on-year increase of 16.11%; The rent cost was 1.609 billion yuan, a year-on-year increase of 4.51%; Depreciation and amortization was 1.116 billion yuan, a year-on-year increase of 20.04%.
The large increase in labor cost is mainly due to the fact that in order to ensure the salary competitiveness of grass-roots personnel and improve the enthusiasm and stability of grass-roots employees, the company carried out a round of large-scale salary increase for basic operators at the end of 2020. In 2021, the company carried out the end network reform, and added a new heavy goods branch to undertake some inefficient business department functions. In the process of transformation, there were personnel redundancy and the per capita efficiency of new heavy goods couriers was temporarily low, Labor costs increased significantly.
On the expense side, from the second half of 2020 to the first half of 2021, the company has formulated and implemented a series of talent training programs, during which the management expenses increased significantly. In 2021, the company spent 3.497 billion yuan, a year-on-year increase of 24.09%; Among them, the management expense was 2.779 billion yuan, a year-on-year increase of 27.12%, and the management expense rate was 8.86%, an increase of 0.91 PCTs.
To sum up, since the company was put into operation in 2021 and entered the ramp up period of production capacity, the cost increase was higher than the income increase, and the gross profit margin was 10.62%, a year-on-year decrease of 1.04pcts. In addition, the implementation of the company's training program in 2021 resulted in a significant increase in management expenses and phased pressure on performance.
The impact of Q1 epidemic in 2022 led to a decline in income. Thanks to the layout in 2021, transportation and rent costs have improved
In 2022, the main business income of Q1 company was 7.020 billion yuan, a year-on-year decrease of 4.75%. The company's business development and macroeconomic prosperity have a high degree of synergy. Affected by the external environment, especially the repeated epidemic in March, the company's revenue fell year-on-year in the first quarter.
In Q1 2022, the operating cost of the company was 6.385 billion yuan, a year-on-year decrease of 4.02%. In 2022, the decline of Q1 revenue was slightly higher than that of cost, and the company's gross profit margin was 9.05%, a decrease of 0.69pcts compared with Q1 in 2021.
The decline in gross profit margin was mainly due to the lower than expected income growth under the epidemic and the rise in labor costs caused by capacity mismatch. In 2022, the labor cost of Q1 company was 3.347 billion yuan, with a year-on-year increase of 3.91%, accounting for a year-on-year increase of 3.97 PCTs.
It is worth noting that the prospective investment of the company's resources in 2021 and the improvement of transportation and terminal rent costs have achieved initial results. In 2022, the proportion of self owned transportation capacity of Q1 company increased to 60.69%, the total transportation cost was 1.905 billion yuan, a year-on-year decrease of 11.02%, and the proportion of revenue decreased by 1.91 PCTs. In terms of end rent, through model optimization, the number of inefficient business outlets was reduced, and the rent expense of Q1 company in 2022 was 406 million yuan, a year-on-year decrease of 10.30%, accounting for a year-on-year decrease of 0.36 PCTs.
To sum up, under the epidemic, the company's revenue growth was lower than expected, and the labor cost increased due to capacity mismatch. The gross profit margin of Q1 company decreased in 2022. However, thanks to the company's long-term resource layout in 2021, the improvement of Q1 transportation cost and rent cost in 2022 has achieved initial results.
The inflection point of the pattern is emerging, waiting for the demand to pick up
After the integration of JD logistics Deppon Logistics Co.Ltd(603056) , the middle and high-end Express Track ushered in an inflection point in the pattern. The revenue per kilogram of Deppon Logistics Co.Ltd(603056) express gradually stabilized, and cost control became the key to the enterprise's profitability. On the cost side, Deppon Logistics Co.Ltd(603056) 2021 has made a forward-looking capital expenditure layout, and the downward trend of transportation cost is clear. It is expected that under the background of macro recovery and JD logistics coordination, the company's capacity will climb and release the profit elasticity.
The profit forecast and investment rating are adjusted according to the announcement of the company. It is estimated that the operating revenue of Deppon Logistics Co.Ltd(603056) 20222024 will be 33.921 billion yuan, 36.55 billion yuan and 38.691 billion yuan respectively, and the net profit attributable to the parent company will be 523 million yuan, 768 million yuan and 847 million yuan respectively, and the corresponding PE will be 26.80 million yuan, 17.76 million yuan and 16.12 million yuan respectively. Maintain the "overweight" rating.
The risk suggests that the epidemic situation is repeated, the macroeconomic growth slows down, the price war intensifies, the promotion of cost optimization slows down, and the synergy and scale effect are less than expected
