Core viewpoints

The company announced that it will jointly fund the establishment of a green numerical shipping service platform with COSCO Shipping International (Hong Kong) to provide low-carbon intelligent solutions. The subsidiary established this time gives full play to the advantages of the group to solve the needs of digital shipping transformation scientifically and efficiently. As the core digital provider of the group, the company benefits from shipping magnanimity and digital transformation. At the same time, the company actively promotes the transformation of products and platforms, and the "Chuan Shibao" products achieve the market-oriented landing of data elements. We believe that the company will benefit from the group's digital transformation needs and the promotion of product transformation, to maintain the "buy" rating.

Event

The company announced that it will jointly invest with COSCO Shipping International (Hong Kong) Co., Ltd. to set up a green digital shipping service platform company to provide industry enterprises with green low-carbon intelligent solutions for the shipping industry.

Brief comment

Cooperate to set up subsidiaries and give full play to the advantages of the group. The subsidiary Green Digital Shipping Service platform Company to be established in this announcement is jointly funded by COSCO Haike and COSCO Shipping International (Hong Kong) with a registered capital of 50 million yuan. The shareholding structure is 51 per cent owned by COSCO Shipping International (Hong Kong) and 49 per cent owned by COSCO Haike. The subsidiary established this time is a green digital intelligence ship service platform construction project, which is one of the key reform tasks of the Group. The platform is a "ship service platform". Is to provide shipowners and shipping companies with full life cycle green, intelligent and digital services. In other words, the platform hopes to integrate online digital products, offline physical services and physical product supply around ships into the platform to solve the needs of shipping digital transformation scientifically and efficiently.

The company is the core digital provider of the group, benefiting from shipping magnanimity and digital transformation.

The company is a subsidiary of COSCO Shipping Group, and the smart shipping and intelligent logistics plates involved in its business are based on the information construction of COSCO Shipping Group. Based on the group's positioning of the company, we think we can refer to the role of Baoxin software for Baosteel Group. Considering that the development of shipping informatization is slower than that of other industries, and considering the promotion of the current comprehensive industrial digital transformation and the high demeanor of shipping in previous years, we believe that the company's business is expected to benefit from the dual role of shipping magnanimity and digital transformation. achieve rapid business growth.

Business to the product / platform transformation, "Chuanshibao" benefit policy is good. Based on the accumulation of industry experience over the past years, the company has created a number of platforms and product products with competitive advantages and high standardization rate. These include: 1) 1) "Chuanshibao" (based on AIS data) platform becomes the first products listed in Shanghai data Exchange; 2) Intelligent Shipping Management platform (an intelligent operation platform built around ship operation and management of shipping enterprises; 3) active ship navigation safety system (similar to ADAS); 4) ship shore electricity system (to achieve electricity saving and safety management). Considering that the country is actively promoting the marketization of data elements, the company's "Shuanshibao" products are expected to realize the application in shipping, finance and other multi-markets and expand the scale of business by virtue of its rich shipping-related data.

Investment suggestion: the company's smart shipping and smart logistics business all benefit from the group's digital transformation and industrial digital upgrading needs. With the promotion of its own product transformation and the increase of downstream demand, it is expected to achieve the common growth of revenue and gross profit margin. We expect the company to achieve an operating income of 1.907 billion yuan in 2022-2023, with a net profit of 2.0 yuan and 250 million yuan, corresponding to the current price PE of 32X/26X, maintaining a "buy" rating.

Risk analysis.

1) intensified competition in the industry: the intelligent transportation industry in which the company's business is located is relatively mature, and the industry competition is relatively market-oriented. The entry of new participants may lead to intensified competition in the industry, and there is also market competition in some intelligent shipping products and services. 2) the improvement of the company's product capacity is not as expected: the company has increased its R & D investment in the data center, smart logistics, smart shipping and other product lines, resulting in a certain R & D cost, and there is a time gap between product marketization behavior and R & D investment. the actual product effect will affect the product gross profit margin. 3) the growth rate of orders is lower than expected: the company's business is mainly carried out in a project-based manner, and orders are the leading indicator of business development. at present, local policy fluctuations greatly affect the normal progress of the business, or it may lead to a longer order cycle of the company. Platform and product business are affected by the company's marketing efforts, acceptance and implementation capacity and other factors.