Daiwa published a research report pointing out that the conflict between Russia and Ukraine reduced the e-commerce and air transportation of 0598.HK in the first quarter, but the group's low valuation and high dividend will benefit from the recovery of the logistics market. Daiwa has lowered its revenue forecast for 2022-24 by 3-6%, and the profit forecast has also been adjusted slightly, reiterating the "buy" rating and maintaining the target price of HK $4.15.

Sinotrans management said at the meeting that the group's business was hampered by the conflict between Russia and Ukraine and the closure of cities in the mainland, but believed that under the policy of ensuring logistics stability, the mainland logistics market would take the lead in recovery. The management pointed out that since April this year, the group's business has been affected by the warming of the epidemic in the mainland, and the substantial impact on the financial performance in the second quarter depends on when the epidemic is brought under control, while the international sanctions imposed on Russia have also weakened China's air transport capacity.

The management pointed out that the Group recorded year-on-year growth in business revenue and profits in the first quarter and aimed to identify acquisition targets in Southeast Asia and Europe to expand supply chain solutions in the international market and ensure future profitability.