Ka Shing International Disclosure of Triple report 2021

Ka Shing International disclosed that in the first three quarters, operating income reached 926 million, an increase of 12.7% over the same period last year, net profit of 160 million, an increase of 21.1% over the same period last year, and a deduction of 151 million yuan of non-return net profit, an increase of 44.2% over the same period last year, of which the income in the third quarter was 330 million, an increase of 1.87% over the same period last year and 59.4 million, an increase of 16.6% over the same period last year, deducting 57.42 million yuan of non-return net profit, an increase of 26.3% over the same period last year.

The revenue cost is stable, and the deduction for a single quarter still maintains a rapid growth rate.

The company's operating income in the third quarter was 330 million, a slight increase over the same period last year. On the cost side, as the new capacity has not yet been consolidated, the company's operating costs do not fluctuate much, at 228 million in the third quarter, down slightly from the previous quarter, with a gross margin of 102 million in the single quarter, up 15.7% from the same period last year. In terms of expenses, the rate of sales, management and R & D expenses increased slightly in the third quarter, while the financial expense rate decreased due to additional issuance. Thanks to income growth and cost control, net profit deducted from non-home ownership has achieved relatively rapid growth.

The inflection point of capacity release has emerged, and endogenous epitaxy contributes to growth.

The second phase of Jiacheng International Port is about to be fully put into production, the third phase of the project has already been carried out, and the Hainan project and the Greater Bay area (South China) international e-commerce port project will be launched one after another. In addition, the company's expansion area is not limited to Guangzhou and Hainan, the layout may consider extension to open up long-term growth space.

Risk hint: the project does not advance as expected, and the profit margin of the project is not as expected.

Investment advice: maintain a "buy" rating

All 52,000 square meters of the second phase of Jiacheng International Port will be put into operation one after another and begin to accelerate the release of performance; Hainan 210000 level warehousing, which locates duty-free + cross-border logistics, will also be put into operation in the fourth quarter of 2022. It is estimated that the profit forecast will be raised to 224 million, 389 million and 479 million in 21-23, and the "buy" rating and reasonable value center will be maintained at 55.85 yuan. the target price corresponds to the PE valuation of 40.0X, 23.1X and 18.7X for EPS from 2021 to 2023, respectively.