Incident: On April 12, 2022, the company signed a “Strategic Cooperation Agreement” with the Industrial and Commercial Bank of China. The latter will provide financial support for the company's ongoing and proposed high-standard logistics center projects in the form of financial and investment banking. In terms of financial business, on the premise that various policies and conditions are met, ICBC provides the company with comprehensive financial service support totaling 3 billion yuan or equivalent in foreign currency and supporting preferential financing interest rates. At the same time, it also provides multi-currency, multi-term financing business types and comprehensive financing solutions. In terms of investment banking, ICBC leverages its financing experience to provide companies with services such as plan design and investment decision consulting, and customizes innovative products such as ABN and REITs.
Build an international air transport hub and strengthen barriers by deepening business collaboration. The company has barriers to the production capacity of high-standard warehouses within the supply chain service industry. The total construction area of the six high-standard smart logistics parks completed, under construction and proposed at this stage is about 2.35 million square meters. The major high-standard warehouses operate around cross-border e-commerce and duty-free industries. Among them, the company plans to build the Kacheng International Superworld Port in the Greater Bay Area and position it as a leading international aviation logistics hub center. As a supporting facility and service front end and terminal for the company's air cargo business, it is expected to provide a seamless connection between distribution and separation for the company's air cargo business. The company initially invested in a joint venture with Huamao Logistics and Zhidu to establish an airline. It is expected to combine air transport hubs to integrate resources from various parties to extend existing advantages, expand the scale of cross-border air transport business, and improve the company's business matrix.
Broaden financing channels to accelerate production expansion and implementation, and revitalize assets to make full use of production capacity advantages. The construction of all major parks under construction and proposed for construction requires investment, and construction is expected to generate further capital requirements as business development accelerates. By broadening financing channels through various innovative methods with the support of ICBC to reduce financing costs and improve the efficiency of capital use, it is expected that the company will greatly ease the financial pressure of expanding production and accelerate the implementation of various production capacities to contribute to performance. At the same time, innovative products such as REITs can revitalize existing assets, and it is expected that the integration of upstream and downstream businesses in the industry will be promoted through investment decision consulting services.
Profit forecast: Relying on Ali's long-term partnership, the company has greatly benefited from the boom in cross-border e-commerce. There are barriers to high-standard warehouse production capacity and growth elasticity with production expansion. It is expected to achieve net profit of 316 million yuan, 421 million yuan, and 553 million yuan in 2022-2024. PE corresponding to the current stock price is 15, 12 and 8 times, maintaining the “buy” rating.
Risk warning: production capacity construction is blocked; upstream demand is insufficient; financing cannot be implemented; customer relationships are damaged.