Port high-speed warehousing three-dimensional integration, profits from the holding company's investment income: the company's main business mainly includes port construction and operation business, holding shares in Yantian International Container Terminal, Yantian West Terminal, Caofeidian Port, Huiyan Expressway and other companies. The investment income of the joint venture company and subsidiaries is the main source of income of Yantian Port. From 2011 to 2013, the investment income accounted for 66%, 75% and 72% of the operating profit. The company's investment income in the first three quarters was 270 million yuan, an increase of 6.8% over the same period last year, and the reported investment income was 160 million yuan, of which Yantian International investment income was 110 million yuan, an increase of 24% over the same period last year, mainly due to the reduction of income tax payment and Caofeidian investment income of 30 million yuan, a decrease of 20% over the same period last year, mainly due to the increase in depreciation of container terminals and higher labor costs.
Invest in Qipanzhou port project, layout of the Yangtze River economic belt: the company invests 400 million yuan with Huangshi Transportation Investment Company to set up Qipanzhou Port Company, with a registered capital of 500 million yuan, accounting for 80%, and approves the company to invest no more than 600 million yuan in the Chi Panzhou Port project. The coastline of Huangshi City is 73 kilometers long, accounting for 7 percent of the Yangtze River economic belt in Hubei Province, and Hubei Province accounts for about 1 percent of the trunk line of the Yangtze River. The Huangshi municipal government promised not to approve the new terminal and to transfer all cargo to Qipanzhou port area. The company's strategic layout of the Yangtze River Economic Belt is worth looking forward to.
The throughput of Yantian Port is gradually declining, and the free Huiyan Expressway may be a trend: the growth rate of port throughput of all ports in Hong Kong has maintained steady growth, while that of Shenzhen, where Yantian Port is located, has shown negative growth in the first 11 months. The freight throughput of Guangzhou is growing at between 4% and 6% this year, while Zhanjiang Port is growing at 14% and 16% this year. On December 25, the Yantian comprehensive reform deepening meeting indicated that the toll station of the Yantian ao tunnel, which is part of Huiyan Expressway, will be cancelled by February 1, 2015. The original toll standard is 5 yuan for an one-way trolley, 30 yuan for a large trailer, and 75 yuan for the whole journey of the highway. The free tunnel will impact the high-speed business, but it will help Yantian Port to attract ships to berth.
Investment advice: neutral-An investment rating, 6-month target price of 12 yuan. We expect the company's revenue to grow by-1.3%, 0.3% and 2.0% respectively, and net profit to grow by 5.5%, 3.6% and 5.1% respectively from 2014 to 2016. For the first time, the neutral-An investment rating has a six-month target price of 12 yuan, which is equivalent to 55 times the dynamic P / E ratio in 2015.
Risk hint: the global economic recovery is not as expected, and the effect of the Yangtze River economic belt is weak.
