Matters: on December 08, 2014, the company announced that it intends to use cash, totaling RMB 51.5812 million, to absorb 100% equity interest in China Shipping Information held by Shanghai Shipbuilding Research Institute, the controlling shareholder. According to the announcement, China Shipping Information achieved a net profit of 1.1414 million yuan in 2013 and a net asset of 50.9114 million yuan in June 2014. the company's proposed cash acquisition premium is only 1.01 times PB.

Peace viewpoint:

The reform of the group has landed, drawing a successful conclusion for the next year.

This year, driven by the second transformation of the group, great changes have taken place in the company's internal organizational structure, and the reform of the business department has become the cornerstone of development, which prepares for the company's future incentives, extension development and endogenous growth. the construction and operation of Haitong platform in July has also taken a solid step for the company to integrate into the group-related industry. This time, the company's proposed acquisition of China Shipping Information has more clearly defined the group's determination to integrate science and technology resources, and the company is about to become the only technology platform center of the group. The reform fell to the ground and the year ended successfully.

Shipping informationization is the next undercurrent under the cycle.

According to the company's announcement, China Shipping Information is mainly engaged in the construction and operation and maintenance services of China Shipping Group's information projects. at present, it has complete system solutions and successful cases in shipping information fields such as shipping company, agency, warehousing, wharf, crew management and so on. This time, if China Shipping Science and Technology successfully acquires China Shipping Information, it means that China Shipping Science and Technology will formally be involved in the construction of the Group Shipping Informatization Project. According to the analysis of our previous report, SASAC has the task requirement of upgrading China Shipping Group's science and technology information rating to level A, and at present, the Group also has an urgent need to improve its shipping turnover rate. the combination of the two will prompt the Group to accelerate the development of shipping information projects. Shipping informatization may become a key breakthrough in the next transformation and development of the company.

While the reform is going on, we are waiting for further transformation.

At present, the market that can pay attention to the changes that have taken place after the company's reform is still mainly focused on the cooperation with BABA. According to our understanding, at present, Ali's use of the Haitong platform is still limited to specific customers, the traffic import side has not been fully released, and the further expansion of the target group in the future will depend on whether China Sea can further provide competitive prices.

Then, we believe that the reform dividend that the company can release in the future is not limited to the maritime business, and the changes in the traditional business model may also be expected in the future development of the company. Wait for the further reform and transformation of the company!

Profit forecast and investment advice.

According to our forecast, excluding the acquisition of China Shipping Information, the net profit of the company from 2014 to 2016 will be 0.54,0.65 and 87 million yuan respectively (the net profit of the parent company is 0.54,0.75 and 102 million yuan respectively), and the corresponding EPS will be 0.18,0.22,0.29 yuan (0.18,0.25,0.34 yuan respectively). The company is expected to have a potential market capitalization of 7.7 billion yuan in the future, with a corresponding price of 25.41 yuan, maintaining a "recommended" rating.

Risk hint.

There are uncertainties in M & A, lower-than-expected risk of Haitong operation, risk of enterprise reform and transformation, and so on.