Events:

The company released its quarterly report for 22 years, with operating income of 105.53 billion yuan, an increase of 62.75% over the same period last year, and a net profit of 27.617 billion yuan, an increase of 78.73% over the same period last year.

The supply chain is not smooth and the per-box income continues to rise.

Q1 achieved 6.16 million TEU in cargo traffic, down 9.2% from the same period last year, including 5.10 million TEU on international routes, down 7.7% on year-on-year, and 1.06 million TEU on domestic cargo, a decline of 15.6% over the same period last year, which is more obvious than the decline on international routes. We believe that this is due to repeated domestic epidemics in the first quarter. The company's revenue per box of international routes was 2975.14 US dollars / TEU, an increase of 1366.36 US dollars / TEU compared with the same period last year, indicating the high prosperity of the industry. Thanks to this, the company Q1 realized airline revenue of 15.625 billion US dollars, an increase of 67.54 per cent over the same period last year.

Strong balance sheet and cash flow statement

By the end of the first quarter, the company's cash on hand has reached 236.197 billion yuan, the asset-liability ratio has dropped to 55.78%, and the cash ratio has reached 1.56. this shows that the company has plenty of cash on hand and has a strong ability to resist cyclical risks. In terms of cash flow, the company received 105.064 billion yuan in cash from selling goods and providing services in the first quarter, and 62.529 billion yuan in operating net cash flow, with smooth cash flow and solid financial statements.

The epidemic situation in Shanghai has repeatedly led to a sharp decline in the volume of road freight, and the recent epidemic situation in Shanghai has led to a sharp decline in the volume of road freight in Shanghai. Shanghai Port, as one of the ports with the largest throughput in the country, on the one hand, the obstruction of road transportation has directly led to the lack of container freight volume in the country, on the other hand, due to the clear division of labor of the global industrial chain. Some domestic manufacturing industries are highly dependent on imported parts / intermediate products, and the obstruction of the import link also has a certain impact on the production side. As Shanghai freight returns to normal, we think there may be a wave of supplementary exports, which will have another impact on the global supply chain.

Investment advice:

Although the freight rate of the short-term collection and transportation industry has declined, with the improvement of the epidemic, the cargo volume has rebounded into a high probability event, and the collection and transportation industry is expected to usher in an upward phase of prosperity again. It is expected that the collection and transportation industry will remain in a high boom range during the year, and the company's net profit from 2022 to 2024 is expected to be 1317.7, 697.2 and 30.71 billion yuan, corresponding to PE valuations of 1.75,3.31,7.53X, maintaining the buy rating.

Risk tips: Europe and the United States consumer demand fell faster than expected, the impact of war exceeded expectations, security accidents.