Sino-Singapore Jingwei Client, November 3 (Zhang Meng) Recently, the four major A-share express companies have all announced their third quarterly reports.

According to statistics, in the first three quarters, the net profit of the four A-share express companies fell by more than 8%.

The net profit of the four major express companies in the first three quarters fell by more than 8%

  In terms of revenue, in the first three quarters, SF Holdings, YTO Express, Yunda shares, and Shentong Express achieved revenues of 109.593 billion yuan, 23.420 billion yuan, 23.87 billion yuan, and 14.712 billion yuan respectively.

The year-on-year increase was 39.13%, 8.34%, -4.81%, and -6.03% respectively.

  In terms of net profit, four companies, SF Express, YTO Express, Yunda, and Shentong Express, achieved net profits of 5.598 billion yuan, 1.386 billion yuan, 1.02 billion yuan and 0.05 billion yuan in the first three quarters of this year.

  In terms of growth rate, only SF Holdings and YTO Express have achieved positive growth in net profit, but the net profit growth rate is not as high as the revenue growth rate.

Yunda shares and Shentong Express dropped by double digits, -47.83% and -99.52% respectively.

  According to the statistics of China-Singapore Jingwei reporters, the above-mentioned four express companies achieved net profits of 8.009 billion yuan in the first three quarters, a year-on-year decrease of more than 8%.

SF Express's business volume in the first three quarters exceeds that of 2019

  As the industry leader, SF Holdings' business volume in the first three quarters reached 5.672 billion votes, exceeding the total business volume of 2019. The gap between total revenue and total revenue of 112.193 billion yuan in 2019 is only 2.6 billion yuan.

Data map.

Photo by Zhang Meng, China-Singapore Jingwei

  Logistics industry expert Yang Daqing told reporters from Sino-Singapore Jingwei that SF Holdings has entered the e-commerce express market since 2019, and has entered a better business harvest stage after a year of network layout and market expansion.

On the whole, high-quality express delivery is still a scarce resource in the Chinese market. After SF Holdings entered the e-commerce express delivery market, it has achieved better business growth with the help of improved networks and high-end resources such as cold chain capacity and air capacity.

  Jiang Han, a senior researcher at Pangu Think Tank, believes that the rapid growth of SF Holdings is related to its long-term investment. Now it has begun to receive layout dividends, including SF's drone express delivery and intelligent development.

  It is worth noting that in the third quarter of 2020, the gross profit margin of SF Holdings fell from the previous quarter.

Gross profit margin in the third quarter was 17.1%, compared with 21% in the second quarter, a decrease of 3.9% from the previous quarter.

Wang Jingtian, an analyst at Galaxy Securities, pointed out that the decline in gross profit margin was affected by factors such as the advance layout of future business expenditures and the gradual return of preferential policies to the epidemic.

Shentong's net profit in the first three quarters nearly doubled

  In the first three quarters, the net profit of Shentong Express fell by 99.52%.

In response to the decline in net profit, Shentong explained that during the reporting period, market competition was fierce. During this period, the company further promoted network flattening. In order to maintain the healthy development of the network, the company increased its market policy support.

  Shentong Express also stated that during the reporting period, the company increased its market expansion efforts, which led to an increase in the company's sales expenses; during the reporting period, the company paid short-term bank loans and corporate bonds interest increased, which led to an increase in financial expenses.

  According to Yang Daqing's analysis, Shentong Express has an adjustment effect after integrating into Ali, and the market has high expectations for it. However, at this stage, Shentong Express is deeply promoting network flattening, increasing market policy support and market expansion, and sales expenses have greatly diluted profit margins .

In addition, short-term bank loans paid by the company increased, which in turn increased financial expenses.

  Yang Daqing added that Shentong is an express delivery company with a relatively high proportion of Alibaba's shareholding. If Alibaba's digital intelligence technology is fully utilized and services extended to the e-commerce supply chain, there is still considerable room for growth.

Expert: Quality and service competition are the key to the future

  In Jiang Han’s view, the future development of the express delivery industry needs to shift from the current relatively red sea competition to the blue sea competition. On the one hand, the express delivery giants need to reduce costs through technological and intelligent means, and on the other hand, they need to further optimize the industry. Service quality wins, not a pure price war. The future development of express delivery must be quality competition. Quality and service competition are the key to the future.

  Yang Daqing believes that the problem of price competition in the express delivery market is more prominent, and some companies may enter the critical point of price competition, and various resources are facing extreme challenges, and it is difficult to reduce costs and improve efficiency in stock capacity.

One is the need to switch to digital and intelligent competition, obtain new production capacity, and promote cost reduction and efficiency improvement. The second is to break through business boundaries, to develop into the supply chain and to find new growth poles in conjunction with cargo owners. The third is to strengthen platform linkage. Explore new ecology and promote the upgrade of logistics clusters.

(Zhongxin Jingwei APP)

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