Full Truck Alliance (YMM, Financial) reported robust Q3 2024 financial results, driving its stock up by over 14%. The company achieved a revenue of 3.03 billion yuan, marking a 33.9% year-over-year increase. Adjusted net profit surged by 50.2% to 1.24 billion yuan, with a strong adjusted net profit margin of 40.92%. This performance led to a trading volume increase of 3.2 times compared to the previous day.
Full Truck Alliance has consistently gained institutional support, with significant investments from major financial institutions like JPMorgan and Morgan Stanley. In the current quarter, Fidelity International and First Beijing increased their stakes, reflecting confidence in the company's long-term value. Over the past six quarters, YMM's stock has risen by 61.3%, underscoring market recognition of its investment potential.
The company's robust fundamentals are a key attraction. As a leader in logistics digitalization, Full Truck Alliance invests heavily in smart infrastructure, enhancing logistics efficiency and reducing costs. The platform focuses on two critical metrics: shippers and drivers. In Q3, the company revamped its Yunmanman brand, boosting user engagement and platform loyalty.
Shipper engagement reached new heights, with average monthly active users growing by 33.6% year-over-year. The company improved shipper experiences with simplified shipping functions and maintained a rolling retention rate above 80%. This success is reflected in the platform's fulfillment order count, which grew by 22.1% to 51.9 million orders.
Driver engagement also saw significant growth, with active drivers surpassing 4 million over the past 12 months. The company enhanced driver retention through various initiatives, maintaining a high next-month retention rate of over 85%.
Full Truck Alliance's solid financial position, with a low debt ratio of 9.3% and substantial cash reserves, supports strategic acquisitions for business expansion. The company's valuation remains attractive, with a price-to-earnings ratio (TTM) of 25, suggesting potential undervaluation given its strong growth trajectory.
