share_log

嘉诚国际(603535):嘉诚再造计划启航

Ka Shing International (603535): Ka Shing Reengineering Project sets sail

浙商證券 ·  Sep 29, 2021 00:00

Report guide

On September 28, the company officially signed the investment agreement of the second Hainan Digital Intelligence Logistics Center, with a project investment of 1.601 billion yuan. After this project reaches production, relying on Hainan duty-free industry dividend, from the profit contribution point of view will "re-create a Jiacheng International", recommended to buy.

Main points of investment

The investment agreement of Tianyun International (Hainan) Multi-function Digital Intelligence Logistics Center was signed. Hainan layout next City Company and the Management Committee of Hainan Yangpu Economic Development Zone signed the "Tianyun International (Hainan) Mathematical Intelligence processing and Circulation Center Project Investment Agreement" on September 28. It is proposed to invest in the construction of Tianyun International (Hainan) Mathematical Intelligence processing and Circulation Center project in Hainan Yangpu Economic Development Zone. Yangpu, as a pilot demonstration zone of Hainan Free Trade Port area, will be closed in 2023. The policy of free trade port area will be given priority in Yangpu.

The investment of the project is estimated to be 1.601 billion yuan, located in the southeast corner of the bonded port area of Yangpu Economic Development Zone, with a total construction area of about 350000 square meters, including a five-story ring road three-dimensional modern digital processing and circulation center and supporting facilities. to provide customers with customized logistics solutions and integrated logistics services in the whole supply chain.

The project shall be started within 4 months from the date of land delivery and completed within 24 months.

The project is expected to increase business income by about 1.2 billion yuan a year and contribute a profit of about 240 million yuan. When completed, the project will become the largest and most influential international logistics center in Hainan, integrating modern warehousing center, digital intelligence circulation and processing center, manufacturing global distribution center, multimodal transport center, global distribution center, exhibition center and cross-border e-commerce center. Relying on the geographical advantages of Hainan Yangpu Economic Development Zone, the return on investment of the project is expected to be about 15%.

Hainan's tax exemption policy on outlying islands continues to be relaxed, and the tax-free market on outlying islands will continue to relax in the next five years: Hainan implemented the outlying island tax exemption policy on a pilot basis for the first time in 2011, and a total of eight adjustments have been made in the past 10 years, showing a trend of gradual relaxation. the main direction is to relax the applicable object of tax exemption, relax the restrictions on the variety of commodities, raise the per capita tax exemption limit, and so on.

2) Market size: the scale of the duty-free market on outlying islands is about 26 billion yuan in 2020, surpassing other tax-free ways for the first time and occupying the largest market share of the duty-free industry. The CAGR of the duty-free market on outlying islands from 2016 to 2020 is 33.6%, and the market size is expected to exceed 100 billion yuan in 2025.

The competition pattern of tax exemption on outlying islands is emerging, and the leading position of exemption is difficult to shake, and service providers are expected to benefit from the continued high demand.

1) the pattern of tax-free competition on outlying islands is emerging: in July 2020, the tax-free license of Hainan outlying island was liberalized. after the exemption, four enterprises including Haifa Control, Sea Travel, Shenzhen exemption and China Service were granted duty-free license. as of May 2021, a total of five operators in Hainan operate 10 duty-free shops on outlying islands.

2) Zhongmian still occupies a dominant position: in June 2020, after the injection of 51% stake in Haimian, China's duty-free market share in Hainan outlying islands further increased. Of the 10 duty-free shops that have been put into use in Hainan, 6 are owned by China, which occupies the leading position in Hainan's outlying island duty-free market both in terms of the number and size of duty-free shops.

3) the company is expected to fully benefit from the industry dividend as an exempt logistics partner.

With the official opening of duty-free mailing business in Hainan outlying islands, the logistics warehousing demand of duty-free business in Hainan outlying islands is expected to grow continuously.

The translation is provided by third-party software.


The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
    Write a comment