Yuantong Express (600233): Four strategies for expanding service quality, cost control, terminal construction, and customer empowerment

Yuantong Express (600233): Four strategies for expanding service quality, cost control, terminal construction, and customer empowerment

Recent situation of the company We organized a field study of Yuantong Express and exchanged views with leaders such as President Pan.

Leaders of the review company believe that due to the steady growth of the scale of e-commerce, the demand for the express delivery market continues to be strong.

We expect the business volume of the industry to maintain a high growth rate (combined growth rate of about 20%) in the next two years, and the company is expected to achieve 10-15 higher growth rates than the industry.

Courier companies have an excellent business model: It is said that the courier companies have good cash flow (the prepaid payment is used for the billing fee, and there is an account period for freight settlement), while the capital expenditure is phased; the direct operation of the transfer center ensures operating efficiency, andThe end joining has fully released the market vitality, so it is very suitable for e-commerce logistics needs.

Leaders believe that the barriers to the express delivery industry are gradually increasing, second-tier companies are accelerating elimination, and the impact of falling single ticket prices on profitability is relatively limited, because of the existence of scale effects, single ticket transportation, sorting, and end cost reduction through cost control and efficiency improvement.So the impact is within the controllable range.

The company’s competitive strategy: 无锡桑拿网 service quality, cost control, terminal construction, and customer empowerment.

Yuantong cooperated with IBM as early as 2009 to develop a “King Kong” system for visual and controllable management of the entire life cycle of express shipments. In fact, the data is very rich, but it has not been used enough in the past few years.

Since becoming President in April of this year, President Pan has combined his own experience and expertise in the field of IT information with a high degree of emphasis on information management and increased it. In particular, he strengthened the linkage and synergy between technology and business, and optimized the “management drivingInformation systems such as “cabin” (headquarters management) and “Yunmeng system” (capacity management) cover the entire business process of collection, transfer, delivery, customer service, etc.

On this basis, the company’s sustainable technical means to control and control service quality (headquarters to improve service quality to a strategic level, establish 7 special teams to improve key efficiency, optimize service quality assessment index system, real-time data monitoring in advance to prevent, officeComprehensive mobility to improve management efficiency), reduce costs (combined with data analysis to improve vehicle loading rate, reduce unilateral vehicles, increase automation expansion, refine labor management: combine own and expansion to flexibly employ labor, optimize piece counting, weight counting, etc.Performance appraisal method).

In addition, the company is also committed to building capacity at the terminal: delivery terminal: continue to increase the proportion of express delivery into the warehouse, increase end stations, shared distribution centers and other end forms, we think it will be able to meet the various needs of customers, while reducingFront-end cost; Customer front-end: The company will further promote the docking with customer systems, and can use the “Customer Housekeeper” system to track shipments throughout the process. We believe this measure will improve the management efficiency of merchants and increase customer stickiness.

Estimates currently suggest that this generally corresponds to 202014.

2 times the price-earnings ratio, the lowest peers of Tongda.

We believe the company is facing an inflection point in fundamentals and maintains an outperform industry rating and target price.

RMB 67, corresponding to 18 times P / E ratio and 27% growth space in 2020.

The growth rate of risk business was lower than expected, the unit price fell sharply, and the cost control effect was lower than expected.