| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 25.81 | 37 |
| Intrinsic value (DCF) | 21.81 | 16 |
| Graham-Dodd Method | 9.77 | -48 |
| Graham Formula | 16.02 | -15 |
DEPPON LOGISTICS Co., Ltd. is a leading Chinese logistics company founded in 1996 and headquartered in Shanghai. As a comprehensive logistics service provider, Deppon operates across China and multiple international markets including Korea, Japan, Thailand, Singapore, Malaysia, and Vietnam. The company's core business segments encompass express delivery services, less-than-truckload (LTL) transportation, full truck load (FTL) transportation, and sophisticated warehousing management solutions. Deppon has strategically expanded its service portfolio to include cross-border logistics and value-added services, positioning itself as an integrated supply chain partner for businesses operating in the rapidly growing Asian logistics market. Operating within the industrials sector's trucking industry, Deppon leverages its extensive network and technological capabilities to serve diverse client needs across e-commerce, manufacturing, and retail sectors. The company's established presence in key Asian markets makes it a significant player in regional logistics infrastructure, benefiting from China's dominant position in global trade and the ongoing expansion of intra-Asian supply chains.
Deppon Logistics presents a mixed investment profile with several notable strengths and concerns. The company demonstrates solid profitability with net income of CNY 860.6 million on revenue of CNY 40.4 billion, translating to healthy margins in the competitive logistics sector. Strong operating cash flow of CNY 3.3 billion provides financial stability, though capital expenditures of CNY 1.2 billion indicate ongoing network investments. The modest beta of 0.288 suggests lower volatility compared to the broader market, potentially appealing to risk-averse investors. However, concerns include moderate debt levels (CNY 1.65 billion against cash of CNY 1.35 billion) and a dividend yield that may be insufficient for income-focused investors. The company operates in China's highly competitive logistics market, requiring continuous efficiency improvements to maintain profitability. Investment attractiveness hinges on execution capability in international expansion and ability to navigate China's evolving regulatory and economic landscape.
Deppon Logistics competes in China's fragmented but rapidly consolidating logistics market, where scale, network density, and technological capability are critical competitive advantages. The company's primary strength lies in its comprehensive service portfolio spanning express delivery, LTL/FTL transportation, and value-added services, allowing it to serve diverse customer needs through an integrated approach. Deppon's established domestic network provides density advantages in key economic regions, while its international expansion into Asian markets positions it to capture cross-border logistics growth. However, the company faces intense competition from specialized players and larger integrated logistics providers. In the express segment, Deppon must compete with more agile, technology-driven players, while in freight transportation, it confronts scale disadvantages compared to market leaders. The company's competitive positioning is further challenged by the capital-intensive nature of logistics infrastructure and the need for continuous technological investment to maintain efficiency. Deppon's regional focus provides depth in specific markets but may limit growth potential compared to competitors with broader geographic coverage. Success will depend on optimizing network efficiency, developing specialized capabilities in high-value segments, and effectively executing international expansion while maintaining domestic market share.