Events:

Chuanhua Zhaopin released a semi-annual report for 2021, with revenue of 15.948 billion yuan in the first half of the year, an increase of 83.08% over the same period last year, and a net profit of 546 million yuan, up 12.76% and 17.40% over the same period last year, in line with expectations. The company's intelligent logistics platform plate is constantly integrated and developed around the four major service systems of "network freight service", "intelligent highway port service", "logistics service" and "financial service".

In the first half of 2021, the whole platform realized GTV 44.5 billion yuan, an increase of 39.06% over the same period last year; operating income was 13.599 billion yuan, an increase of 110.89% over the same period last year; and operating profit was 154 million yuan, an increase of 202 million yuan over the same period last year.

Main points of investment:

The business growth of the network platform is higher than expected, and the expansion is expected to accelerate.

The transaction volume of the company's online freight service in the first half of the year was 8.7 billion yuan, a substantial increase of 342% over the same period last year, of which the expansion outside Hong Kong exceeded 60%, the number of shipping orders exceeded 1.75 million, the platform operated more than 7000 customers, and the platform carried 480000 vehicles. "Land Express" and "Rong Yi Yun" were launched in May 2020 and April 2021 respectively, integrating the company's network freight resources, opening up the information barriers between upstream and downstream logistics providers and drivers, and optimizing the operation efficiency of the industry. to create a "win-win" situation for all participants in logistics, and the business model can be expanded rapidly.

In the first half of the year, the turnover of the platform in the highway port was 32.8 billion yuan, an increase of 19.27% over the same period last year; the business revenue of the park was 610 million yuan, an increase of 26.12% over the same period last year; and the gross profit margin was 65.69%, an increase of 8.05% over the same period last year. The overall rental rate of the highway port is 90%, an increase of 2 percentage points compared with the previous month. The gross profit margin of the company's business has continuously increased from 19.34% in 2017 to 65.69%. With the new highway port project put into use, the overall operation efficiency of the highway port continues to improve, the gross profit margin of the company's intelligent highway port is improved, and the revenue increases at the same time. It is expected that the profit level of the company's business will be further improved after the national highway port is fully put into use in the future.

Profit Forecast and Investment suggestion

The company's performance is in line with expectations, and we maintain our profit forecast, with an estimated operating income of 290.41 yuan, 370.44 yuan and 47.953 billion yuan for 2021-2023, a net profit of 15.32,18.36 and 2.152 billion yuan respectively, a corresponding EPS of 0.46,0.56 and 0.65 yuan respectively, and a "buy" rating of 18 times, 15 times and 13 times of the current stock price, respectively.

Risk hint

The profit of highway port is lower than expected; the expansion of supply chain business is not as expected; the change of profit margin of after-vehicle business caused by oil price fluctuation; the decline of government subsidy affects the net profit.