YTO International Express and Supply Chain Technology Limited (6123) AI Stock Analysis

• Market Cap: HK$455.61M
• Dividend Yield: 2.25%
• Average Volume (3M): 133.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: -35.13%
• EPS Growth: -11.52%
• Country: HK
• Employees: 1,119
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): -0.14
• Shares Outstanding: 420,190,000
• 10 Day Avg. Volume: 157,200
• 30 Day Avg. Volume: 133,633
• PEG Ratio: 0.08
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -6.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$1.00 ▼(-7.41% Downside)

The overall stock score is primarily influenced by the company's financial performance challenges, including declining revenues, profitability, and negative cash flow. Technical analysis indicates a bearish trend, while valuation concerns arise from a negative P/E ratio. The dividend yield offers some compensation, but the overall outlook remains cautious.

Positive Factors

Strong Equity Financing

A high equity ratio indicates strong equity financing, reducing reliance on debt and enhancing financial stability, which is crucial for long-term growth and resilience.

Low Leverage

Low leverage minimizes financial risk and interest obligations, providing the company with greater flexibility to navigate economic fluctuations and invest in growth opportunities.

Technological Investments

Investments in technology enhance operational efficiency and customer service, strengthening competitive advantage and supporting long-term growth in the logistics sector.

Negative Factors

Declining Revenue

A consistent decline in revenue indicates challenges in market position and demand, which can undermine growth prospects and necessitate strategic adjustments to regain momentum.

Negative Cash Flow

Negative cash flow limits the company's ability to finance operations and investments internally, increasing reliance on external funding and potentially impacting financial stability.

Declining Profitability

Decreasing profitability and negative margins highlight operational inefficiencies and cost pressures, which can erode competitive positioning and hinder sustainable growth.

YTO International Express and Supply Chain Technology Limited Business Overview & Revenue Model

Company Description

YTO Express (International) Holdings Limited, an investment holding company, provides freight forwarding services in the People's Republic of China, Europe, North America, and other Asian regions. It operates through five segments: Air Freight, Ocean Freight, Logistics, International Express and Parcel, and Others. The company offers freight forwarding services through air, sea, land, and trucking. It also provides other services, including warehousing, distribution, customs clearance, general sales agency, hand-carry, and ancillary and contract logistics services, as well as package delivery solutions. In addition, the company is involved in the issuing of bills of lading and provision of freight forwarding brokerage services activities. It serves customers in various sectors, including fashion and lifestyle, e-commerce, aviation, food and beverage, special projects, and high-tech. The company was incorporated in 2013 and is headquartered in Kowloon Bay, Hong Kong. YTO Express (International) Holdings Limited is a subsidiary of YTO Express Group Co., Ltd.

How the Company Makes Money

YTO International Express and Supply Chain Technology Limited generates revenue primarily through its core logistics services, which include express delivery, freight forwarding, and supply chain management solutions. The company earns money by charging customers for the transportation and handling of goods, which includes both domestic and international shipping. Key revenue streams include fees for express delivery services, bulk freight shipments, and customized supply chain solutions. Additionally, YTO may benefit from strategic partnerships with e-commerce platforms and retailers, enhancing its service offerings and expanding its customer base. Factors contributing to its earnings also include operational efficiencies gained through technology investments and an extensive network of distribution hubs.

YTO International Express and Supply Chain Technology Limited Financial Statement Overview

Summary

The company faces financial challenges with declining revenues and profitability, and negative cash flow in recent periods. While leverage is low, indicating lower financial risk, the company's ability to generate cash flow and maintain profitability is under pressure, affecting its financial stability and growth prospects.

Income Statement

The income statement shows a declining trend in revenue from 2021 to 2024, with a significant drop in net income, leading to negative margins in 2024. Gross profit margin decreased from 10.5% in 2020 to 7.0% in 2024, while net profit turned negative, showing a net loss of -$40.77 million in 2024. This indicates declining profitability and operational challenges.

Balance Sheet

The balance sheet remains relatively stable with a high equity ratio of around 69.2% in 2024, indicating strong equity financing. However, the debt-to-equity ratio is low at 0.03, signaling low leverage. Despite a healthy equity position, declining total assets and shareholder equity over the years raise concerns about the company's asset management and financial health.

Cash Flow

Cash flow analysis reveals challenges with zero free cash flow and operating cash flow in 2024, compared to significant free cash flow in prior years. The absence of positive cash flow from operations raises concerns about liquidity and the company's ability to finance its operations and investments without external funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.76B	5.32B	5.29B	6.71B	7.56B	5.05B
Gross Profit	285.10M	370.47M	481.33M	543.31M	792.84M	772.62M
EBITDA	-94.04M	-17.83M	155.03M	195.82M	381.56M	351.64M
Net Income	-59.06M	-40.77M	96.78M	136.74M	273.38M	252.23M
Balance Sheet
Total Assets	1.62B	1.77B	2.19B	2.23B	2.31B	1.69B
Cash, Cash Equivalents and Short-Term Investments	826.06M	672.25M	827.63M	1.05B	575.77M	507.92M
Total Debt	74.63M	37.30M	40.79M	41.28M	165.08M	166.50M
Total Liabilities	446.49M	539.84M	898.20M	1.01B	1.19B	824.31M
Stockholders Equity	1.16B	1.22B	1.28B	1.20B	1.10B	857.40M
Cash Flow
Free Cash Flow	147.96M	-75.76M	-250.61M	695.08M	138.56M	305.36M
Operating Cash Flow	163.96M	-63.53M	-245.88M	698.64M	152.51M	322.95M
Investing Cash Flow	-4.28M	-36.90M	115.19M	-163.86M	1.13M	24.06M
Financing Cash Flow	-51.18M	-47.54M	-38.43M	-70.59M	-67.99M	-108.91M

YTO International Express and Supply Chain Technology Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.08
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6123, the sentiment is Positive. The current price of 1.08 is above the 20-day moving average (MA) of 1.07, above the 50-day MA of 1.07, and below the 200-day MA of 1.11, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 59.53 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6123.

YTO International Express and Supply Chain Technology Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1442	60 Neutral	HK$660.48M	13.97	7.59%	―	13.85%	37.13%
1732	53 Neutral	HK$307.20M	-53.33	-2.51%	―	-1.40%	-128.66%
2130	52 Neutral	HK$991.61M	33.92	5.39%	0.60%	29.11%	-49.03%
6123	45 Neutral	HK$455.61M	-7.71	-4.97%	2.25%	-35.13%	-11.52%
8310	41 Neutral	HK$289.80M	-5.34	―	―	-57.60%	-176.13%
8292	39 Underperform	HK$388.20M	-61.02	-7.88%	―	9.79%	89.05%