Rhyme "Bottom" Debon: How Will The Big Two "Marriage" Stir Up Logistics?

In the eyes of the outside world, 002120.SZ's strategic stake in 603056.SH may be more of a topic than its own holdings. The former is unexpected; the latter is expected.

According to debbon shares, "the 2020 year non public development bank A share plan" shows that Ningbo Meishan bonded port Fuzhou Investment Co., Ltd. (by the rinta shares wholly owned, hereinafter referred to as "Fuzhou investment") will be priced at 9.20 yuan per share, fully subscribe to all the shares of the non-state-owned shares of the debbond share, and spend about 614 million yuan.

By the end of May 25th, the shares of Debon share closed at 13 yuan / share, 41% higher than the subscription price. After the completion of Fuxin investment "hunters", the rhyme shares will indirectly become the second largest shareholder of Debon shares, with a shareholding ratio of 6.5%.

One is the fast transportation leader, one is a courier giant, and the "alliance" between the Debon shares and rhyme shares makes the outside world full of anticipation for the next two years to launch a new wave in the domestic logistics market. "This non-public offering will help companies improve their market share and overall operational capacity, further reduce efficiency and highlight scale effect," said debbond. And rhyme shares on the twenty-first Century economic news reporter said that the matter is inconvenient to comment.

In the industry view, the key point of cooperation between the two sides is whether the future synergy effect can be achieved as expected.

The bottleneck of rhyme's reality

Rhyme shares strategic investment in Debon shares is a reasonable cooperation. Two leading enterprises in the field of express delivery and express transportation have encountered different bottlenecks in the process of transforming integrated logistics service providers.

As a "Express Department" in the market share second only to the express through express company, rhyda shares achieved 15.8% market share in 2019, and became one of the leading enterprises in the domestic express industry.

In recent years, with the release of scale effect, the performance of rhyme shares has also increased steadily. In 2019, the company achieved operating income of 34 billion 404 million yuan, an increase of 148.30% over the same period last year. Net profit attributable to shareholders of listed companies was 2 billion 414 million yuan, up 13.06% compared to the same period last year.

But with the continuous upgrading of the concentration of the domestic express industry, the "Express Department" as the representative of the electricity supplier Express has entered the stage of stock competition. Around the strategy of capital expenditure and "price war" normalization, the domestic express market's profit environment is not as good as before.

Last year, rhyda shares had a record high volume of business and business income, but their profits were lower than market expectations. Take the fourth quarter of 2019 as an example. Last year's "double eleven" peak season became a speed raising point for the company's pricing strategy. According to the calculation, in the fourth quarter of 2019, when the volume of rhyme shares increased by nearly 40% over the same period last year, the average price of its shares fell by more than 6% over the same period last year. Among them, in November and December, the average price of the company fell 7.3% and 9.1% compared with the same period last year, and the price war began to become radical.

In fact, rhyme shares are not the bottom line of the aggressive price strategy.

As of 2019, the operation center of the company's self operated hub was 59, with 3728 franchisees and 27 thousand terminal outlets. According to rhyda shares, the company is continuing to optimize trunk transfer costs through vehicle direct operation, automated sorting equipment and meticulous management. Data show that in 2019, the comprehensive operation efficiency of rhyme share allocation center increased by 54% over the same period last year, and the per capita efficiency increased by 14.2% compared to the same period. The single ticket transfer cost decreased by 9.6% compared to the same period last year, and the single ticket transport cost decreased by 18.1% compared with the same period last year. Relying on the continuous optimization of the cost of operation network and express unit, the single vote cost of rhyme shares has an advantage in the "access system". In 2019, the total single ticket cost of Yun Da share express service business was 2.83 yuan. Excluding the fees, the cost of the single vote is 1.09 yuan, down by more than 10% over the same period.

However, after the "Tongda" express company landed in the capital market, various enterprises gradually increased their operational leverage, and their sensitivity to business volume was also improving, especially the outbreak of the epidemic accelerated the process. Since the first quarter of this year, the "Tongda" express company has increased the intensity of the "price war" in exchange for the market share lost by the epidemic. Among them, rhyme shares bear the brunt of price. In March and April, the single ticket revenue of the company was 2.53 yuan and 2.14 yuan respectively, down 23.3% and 33.5% respectively compared with that of the previous year.

"Price war" is a competitive strategy based on price change, which will significantly impact the profitability of various companies, and will continue to test the management capabilities of the express company and the measures to reduce costs and increase efficiency. Therefore, for rhyme shares, the "killing" with peers in the price can not be avoided, but this is not a permanent solution. Moreover, the transformation process of "integrated logistics service providers" requires express enterprises to form diversified product layering so as to balance the business risks caused by the outstanding single revenue structure. As a result, express transportation has become a common target for express leading enterprises.

Rhyme shares are at the beginning of the expansion of the express market.

In October 10, 2017, Yun Da express shipped the first waybill, which officially entered the "big piece era". Subsequently, rhyme shares continue to enrich the express products, such as the introduction of "168 pieces" products, more refined. Under the competitive distribution pattern of the fast shipping market, rhyme shares soon gained some market share. In 2018, the company's express business revenue reached 538 million yuan, an increase of more than 22 times over the same period.

But in 2019, the express business of rhyme shares declined and revenue dropped to 432 million yuan. Behind this, the competition intensity and initial investment of the fast shipping market far exceed that of rhyme shares.

In May 2019, rhyda shares renounced the priority of subscription rights for its express transportation main business logistics, and said that logistics would no longer be included in the consolidated financial statements, thereby reducing the drag on the listed companies' financial statements.

"Debunking" of de Bang

The increasingly blurred boundary between express and express makes the advantage of fast transportation accumulated in the early years of Debang shares gradually weakened.

In 2019, the income ranking of the domestic express transportation market changed. SF holdings, with its revenue of 12 billion 660 million yuan, surpassed the shares of Debon and sat on the top of the domestic express transportation industry.

Debon shares have been listed on the A share "first express share" aura in 2018. But in recent years, the fast shipping giant has not only been faced with fierce challenges from the fast shipping market, but also in the throes of business transformation. An insider who declined to be named told the economic news reporters twenty-first Century that the market demand of the domestic highway express market is relatively scattered, and the industry threshold is relatively low and the price is sensitive. Although the scale of the express transportation market is large, due to the insufficiency of the capacity of intensive transportation and the low market concentration of the express transportation enterprises, there are generally low price competition and weak profitability in the fast shipping market.

In recent years, the gross margin of express transportation business has also reflected this phenomenon. In 2019, the gross margin of the company's express business was 14.37%, which was 4.69 percentage points lower than that in 2018.

At the same time, the competition pressure of the express transportation industry has not weakened. In January this year, the main competitor of D+, the main competitor of Debon shares, received $300 million in capital investment. In February, it announced a 1 billion yuan D+ round of cash and a $300 million convertible bond financing. This indicates that the capital market will be more intense after the capital gains.

At present, Debon shares have been surpassed by SF holdings on revenue, and they have been surpassed by one meter tick and nun logistics on freight volume. Therefore, finding new growth poles is imminent.

In fact, de Bang shares in the field of large express delivery is another way to get results. In 2019, the company's express delivery business achieved 14 billion 667 million yuan of revenue, exceeding the express business as the main source of revenue. But under the existing direct camp mode, despite the significant increase in the scale of the express business revenue, the control of costs has become a headache.

In 2019, although the business of Debang express had achieved a 28% revenue growth, the business cost of the business increased by more than 32%. Financial data showed that the gross profit of the company's express business was 984 million yuan last year, down 7.42% compared to the same period last year, and its gross margin was 6.71%, a decrease of 2.61 percentage points.

"Since the launch of the express business, the company has focused on the large express market, and the growth rate of express business revenue is higher than that of the industry. The overall business volume is growing rapidly." Debon shares said that in recent years, the company has increased its labor costs continuously, and the cooperation with rhyme shares can achieve the win-win effect of reducing the cost and increasing the efficiency of the market.

In view of this, Founder Securities Analysis said that considering the synergy effect of express delivery and express transportation, Debon shares and rhyda shares can carry out multi-dimensional business cooperation through market expansion, network optimization and centralized procurement. Its strong combination helps to strengthen competitive advantages in the fierce market competition and achieve a win-win goal of reducing the cost and increasing efficiency.

In fact, the "marriage" is more significant for Debon shares. Judging from the current revenue structure, the impact of express business has exceeded the express business. Therefore, Debon shares urgently need to take advantage of rhyme shares' resources and business advantages to boost the profitability of the express business.

"De Bang" marriage rhyme will take full advantage of the successful experience of rhyme in the electricity supplier express, while rhyme's express business will get through with debbond. Zhao Xiaomin, a courier industry expert, told the twenty-first Century economic report that Debang shares had advantages and deep accumulation in the business of express transportation and express delivery. With the help of strategic cooperation, rhyda shares can cooperate with them in the above business level. At the same time, in the field of small business delivery and so on, there is broad cooperation space between Debon shares and rhyme shares.

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