CICC: Maintaining "Outperform Industry" rating for ANE (09956) with target price raised to 11 Hong Kong dollars.

CICC released a research report stating that it has raised the target price of ANE (09956) by 10% to 11 Hong Kong dollars and maintained an "outperform industry" rating. The company's profit forecasts for 2024 and 2025 remain unchanged. CICC pointed out that the third-quarter performance in 2024 exceeded expectations. The revenue was 3.04 billion yuan, a year-on-year increase of 21%; gross profit was 480 million yuan, a year-on-year increase of 67%; gross profit margin was 15.6%, a year-on-year increase of 4.3 percentage points; adjusted net profit was 220 million yuan, a year-on-year increase of 28%. Considering the impact of the value-added tax deduction policy on the high base of other income in the third quarter (about 60 million yuan), the company estimated that the adjusted pre-tax profit increased by 76% year-on-year after excluding this impact. The third-quarter profits exceeded the bank's previous expectations (2.1 billion yuan), mainly due to better-than-expected unit prices and continuous optimization of the network structure driving cost reduction. CICC also pointed out that ANE's single-quarter revenue and freight volume reached a new high, with a stable pricing mechanism, strong cost control, and advantages such as increased provision for bonuses and other expenses. It is optimistic about the company's continued optimization of its network ecology and product structure, which will lead to sustainable and favorable profit growth in the medium to long term. Under the new freight structure, the company is expected to further optimize its cost structure and achieve profitable growth by promoting the construction of a digital and automated transportation system.