Rapid profit growth, maintaining "overweight" rating

In 2021, the company achieved 35.51 billion yuan in revenue, an increase of 64.1% over the same period last year, and the net profit returned to its mother was 2.25 billion yuan, an increase of 47.9% over the same period last year. We downgrade the subsidy forecast and update the annual net profit forecast for 22-23-24 to 22.8 yuan 23.1 / 2.32 billion yuan. Comparable shipping infrastructure corresponds to 22 years of Wind consensus expectation PE8.3x, considering the subsidy factor to give the company 8.1x PE (discount 2%), update the target price to 6.00 yuan (previous value: 9.00 yuan), maintain the "overweight" rating.

Profit continues to repair, performance compensation benefits minority shareholders

In 2021, the company achieved an income of 35.51 billion yuan, an increase of 64.1% over the same period last year; the gross profit margin was 10.2%, down 2.8pct from the same period last year, mainly due to the rapid growth of the platform business with low gross margin; the return net profit was 2.25 billion yuan, an increase of 47.9% over the same period last year. The net profit of 4Q21 was 1.31 billion yuan, an increase of 53.4% over the same period last year. From 2015 to 2021, Chuanhua Logistics accumulated 3.69 billion yuan in non-return net profit, fulfilling 73.9% of the 5 billion performance promise; after deducting the 235 million shares compensated in 2021, the major shareholders will compensate 268 million shares in 2022 (repurchased by listed companies at a total price of 1 yuan).

Tap the profit potential of the highway port, and the platform business is growing rapidly.

By the end of 2021, the company has arranged 70 highway ports, of which 58 have been put into operation and 12 are under construction. In 2021, the company has 10791 enterprises stationed in the highway port, with an annual traffic flow of 48.18 million vehicles, an increase of 16.8% over the same period last year; the rental rate increased by 2pct to 90%, revenue increased by 27.5% to 1.345 billion yuan, and gross profit margin increased by 3.2pct to 65.7%. Based on the continuous growth of the flow of people, vehicles and goods, the company achieved 98.8 billion yuan in GTV for the whole platform, and the operating profit was 497 million yuan, an increase of 145% over the same period last year.

Downgrade profit forecast and maintain "overweight" rating

The company continued to repair, but we lowered our subsidy forecast and correspondingly lowered our annual net profit forecast for 22-23-24 to 22.8 / 2.32 billion yuan (previous value: 23.0 pound 25.3 billion yuan). Comparable shipping infrastructure corresponds to the 22-year Wind consensus expectation of PE 8.3x, considering the subsidy factor to give the company 8.1x PE (2% discount), updating the target price to 6.00 yuan (not considering the share repurchase factor, the previous value: 9.00 yuan), maintaining the "overweight" rating.

Risk hints: macro risk, subsidy policy retrograde, highway and port development and operation risk, market competition.