The domestic position of commodity circulation business is leading, and a hundred flowers blossom on a variety of bulk supply chain business. Benefiting from the upward domestic commodity prices and the expansion of various business scale in the first half of the year, the revenue scale of the company's commodity circulation business ushered in explosive growth. In the first half of 2021, the operating income reached 19.176 billion yuan, a substantial increase of 91.46 percent over the same period last year. The company continues to implement the online transformation of a variety of supply chain business, and the super development momentum of China Reserve Steel is rapid. Relying on its own warehousing and logistics resources, China Storage can achieve stable control of goods, transparent transaction process, and solve the biggest pain point of the risk control side of the ToB Internet platform. The penetration rate of online trading of commodities is still low and there is plenty of room for market growth. The successful model of a single product is expected to be replicated in multiple tracks and is optimistic about the rapid development of online chemical products in the China Reserve supply chain.
The network freight platform industry is moving towards standardization, and China Reserve Zhiyun brings new increments in performance. Zhongchu Zhiyun, the online freight platform operated by the company, has a rapid development momentum. 2021H1 achieved a business income of 12.544 billion yuan, an increase of 51.04% over the same period last year. The turnover of the platform was 129.17 million tons, an increase of 46.75% over the same period last year.
The national supervision policy on the network freight platform is strict, and the industry will be more standardized to eradicate the chaos of false invoice. China Reserve Zhiyun is different from the Internet matchmaking trading platform, its business has offline trading scenarios, standardized operation is more favored by the government, easy to enjoy more preferential policies of the government. At the same time, the platform takes serving the upstream shippers as the starting point to solve the fundamental problem of the realization of platform traffic. With the gradual increase of market concentration, China Reserve Zhiyun should enjoy a larger market share and broad prospects for development.
China's new central logistics enterprises will be set up soon, and we will attach importance to the long-term value brought by the reorganization of central enterprises. On March 19, China Iron and China Chengtong Group's China Reserve and Huamao Logistics issued an announcement that many companies are planning logistics business integration to form a new company, China Logistics. We believe that the new company will pin on the hope of building a modern circulation system and ensure the safety of the industrial chain and supply chain with a huge mission.
The qualification of CNS is the best among domestic logistics enterprises, and it is currently operating nearly 10 million square meters of logistics storage land. Basic logistics is still an important asset industry, and the rich fixed assets make it convenient for companies to expand their operations after restructuring, and the state is expected to give corresponding policy support. The blessing of excellent basic resources will help to gradually form new business type in the future. We believe that the value of high-quality warehousing and logistics resources of China Storage is still underestimated, and we need to pay attention to the long-term value of the restructuring of central enterprises.
Investment suggestion: about 4.3 billion of the government subsidies contributed by the land acquisition and storage in Jiangan District of Wuhan City will be gradually reflected in the future. It is estimated that the company's EPS from 2021 to 2023 will be 0.61,0.60,0.69 yuan respectively, corresponding to PE 12.4x, 12.6x, 11.0x, with a "buy" rating.
Risk hint: the speed of online development of the supply chain and the business development of China Reserve Intelligence Transportation are not as expected.