Under the background of actively carrying out capacity expansion, the company has unique regional advantages and IT logistics business advantages, and its performance will grow rapidly in the next three years, and it will vigorously develop cross-industry and cross-domain logistics business and put into production in Rongda property Park in the second half of the year to cultivate new profit growth points and new business models.
The company has unique location advantages in operating IT supply chain logistics business. More than 48% of the company's revenue is realized in Kunshan. Kunshan, located in the center of the Changjiang Delta, is a highly concentrated place for Taiwan's ICT industry transfer. Kunshan IT business is the leader in the country, with notebook production reaching 65 million units in 2013, accounting for about 1x4 of the global notebook production. The unique geographical advantage has brought great opportunities for the development of the company's business.
IT logistics business has obvious advantages. The company is a modern logistics service provider specializing in the integrated supply chain management of IT industry, mainly engaged in the design and implementation of overall logistics solutions for import and export customs clearance, production line feeding, freight forwarders, transport and distribution, warehousing services, circulation processing, assembly and shipment of hardware equipment and parts related to IT industry. The company's IT industry accounts for 90-95% of revenue and has established good cooperative relations with world-renowned brands Lenovo, Asustek, Acer, Sony Group Corp and Ericsson.
The company is rich in storage resources. The company has a national warehousing network and has set up warehousing bases in Jiangsu, Zhejiang, Shanghai, Shandong, Sichuan, Chongqing, Shaanxi, Guangdong, Hong Kong and Taiwan, totaling 390,577 square meters. At the same time, it has also set up branches in many areas outside Kunshan, and perfect warehousing network resources can provide customers with better services.
The company actively develops cross-industry and cross-domain logistics business. The company actively develops logistics business in other industries and fields. The company actively arranges cross-industry warehousing and logistics business for import through trade execution business. Considering the demonstration effect brought by the successful cooperation of Wituang FTL project and the gradual maturity of the distribution business model provided for Hongtu Sanpower, we believe that the company is still expected to make a breakthrough in cross-industry and cross-field in the future.
The high gross profit margin characteristic of Rongda Logistics Park will contribute to the new growth in the future. Relying on the Shanghai Futures Exchange, the company's Rongda Logistics Park is expected to continue the high gross margin characteristics of the futures trading storehouse. It is conservatively expected that the futures delivery warehouse will have a net interest rate of about 15%, while the annual net profit of the first futures delivery warehouse will contribute about 1500-25 million.
Maintain the "highly recommended-A" investment rating: in view of the company's excellent management ability, continue to make progress in the face of downward industry trends, overcome various difficulties, and actively cultivate new growth points through endogenous development and acquisitions. We maintain the "strong recommendation-A".
