Shentong Express (002468): Ali is about to usher in a transformation and upgrading of its comprehensive holding company

Shentong Express (002468): Ali is about to usher in a transformation and upgrading of its comprehensive holding company

Report Summary: Incident: The company and Ali signed a “share purchase agreement”, which gave Alibaba the right to replace a designated third party to acquire the company’s shares within three years from December 28, 2019, including 51% of Deyin Derun’s equity, and Christine’s100% equity or 16 held by Gongzhirun.

1% of listed company equity, the total exercise price is 99.

800 million yuan.

Ali plans to fully control Shentong, and the transformation of the express delivery industry begins.

Ali has indirectly held Shentong 14 by holding a 49% stake in Deyin Derun.

651% of the shares, in accordance with the share purchase agreement, Ali expects to give priority to Deyin Derun (holding Shentong 29).

9% equity) and Gong Zhirun (holding Shentong 16.

1% equity), Shentong’s shareholding ratio will reach 46%, becoming its largest shareholder.

We believe this is a step in Ali’s logistics era that has triggered a change in the industry: 1) holding express delivery companies, accelerating the output of information technology and business resources, empowering express delivery enterprises, and promoting the industry to move towards efficient and intelligent development; 2) mastering the express delivery entityGrasping hands, responding to the competition from e-commerce peers such as JD.com and JD.com, 深圳桑拿网 and improving the quality of online shopping across the chain; 3) Promote the integration and concurrency of express delivery, accelerate the elimination of end-of-line companies, and promote the optimization of the industry’s competitive landscape.

Shentong has ushered in a period of gradual development and improved competitiveness.

With the strengthening of the relationship between Ali and the company, we believe that Shentong will be able to directly obtain the enhancement of its information technology and automation capabilities to reduce the cost of the main business; secondly, Ali will play a synergistic effect with Shentong to optimize the company’s business and management model.Realize the gradual upgrading of operations.

As a former industry leader, the company has continued to improve its operations after 四川耍耍网 experiencing development twists and turns. It has vigorously promoted the acquisition of transshipment centers and comprehensive management in 18 years. The business volume growth rate in 2019 has rebounded significantly, with a business volume of 30 in the first half of the year.

1.1 billion pieces, up from +47.

24%, the market share increased by 0 compared with the end of 2018.

77 averages reached 10.

85%.

The future outlook is driven by Ali to improve profitability and competitiveness.

Investment suggestion: It is expected that the company’s EPS for 2019-2021 will be 1.

42,1.

73, 2.

02 yuan, the corresponding PE is 20 respectively.

9x, 17.

1x, 14.

7x with a “Buy” rating.

Risk warning: Ali’s equity acquisition is worse than expected; industry competition intensifies