In the first half of the year, Nanjing Port realized an operating income of 73.216 million yuan and a total profit of 15.45 million yuan. The net profit belonging to the owner of the parent company was 12.91 million yuan, or 0.05yuan per share. The performance is better than we expected.

The company's main oil and liquid chemical business has improved significantly, with an overall gross profit margin of 45.32% in the first half of the year, an increase of 6 percentage points over the same period last year. Crude oil business is still the company's core business, accounting for 49% of revenue and gross profit. In the first half of the year, crude oil business revenue increased by 8%, and operating costs decreased by 2.7%. The main reason for the improvement in crude oil business is that the structure of crude oil has been relatively improved and the proportion of crude oil in crude oil shipments with higher loading and unloading rates has increased. The company's refined oil business performed well in the first half of the year, achieving an operating income of 13.76 million yuan, an increase of 39% over the same period last year, and operating costs increased by 25%. This is mainly due to the completion and commissioning of the company's holding subsidiary Huiyang Company, which has improved the company's gasoline and diesel oil transit volume to a certain extent, which has contributed to the rapid growth of the company's oil product loading and unloading volume and income.

Longtan Container Terminal, which is 25% owned by the company, is in good condition in the first half of the year, with a total container volume of 5748 TEU, an increase of 26.15% over the same period last year. The company achieved an investment income of 5.68 million yuan, an increase of 50% over the same period last year. Investment income from Longtan container terminal accounts for 44% of the net profit attributed to the parent company. The company's investment income from Longtan Wharf exceeded the expectations of our last research report: at that time, it was predicted that the investment income from Longtan Company would be 8 million yuan for the whole year, and we raised our annual forecast to 12 million yuan. Sinochem Yangzhou Wharf Company, which accounts for 40% of the company's equity, lost 1.5 million yuan in the same period in 2009, and realized an investment income of 1.74 million yuan in the first half of this year, accounting for 14% of the company's net profit belonging to the parent company. The operating condition is better than our forecast of investment income of 1 million yuan for the whole year.

Nanjing SASAC and Sinotrans Changhang Group are still in negotiations on the restructuring of the Port Bureau and have not yet reached a specific agreement. This also confirms the complexity and arduousness of the restructuring task of Nanjing Port Bureau.

The company is expected to earn 0.09 yuan and 0.10 yuan per share in 10 and 11 years, and the performance still can not support the current stock price. The expectation of future restructuring is the reason why the company maintains a high valuation. Maintain a wait-and-see rating.