Events:
In the first quarter of 2016, Wuzhou Transportation achieved a net profit of 94.978 million yuan, an increase of 155.01 percent over the same period last year, and operating income of 303 million yuan, a decrease of 64.53 percent over the same period last year.
Main points of investment:
The divestiture of mining assets will show the effect of stopping losses and increasing profits. The company replaced a new leadership team in April 2015 and carefully combed the business. In view of the prominent trade risks, the company started the transfer of 67% equity in Tang Han Company, 100% stake in South Star Company and 51% stake in Guotong Company, and successfully completed all the transfers by the end of 2015. In the future, the company will basically suspend commercial activities for bulk trading products and no longer operate the mining industry. After gradually divesting the mineral business, the company achieved a net profit of 94.978 million yuan in the first quarter of 2016, an increase of 155.01% over the same period last year. The effect of stopping losses and increasing profits was obvious. The company's asset-liability ratio was restored and profitability was improved.
Both internal and external repair, high-speed main growth stability. In 2015, the benefit of the highway sector of the company improved steadily: benefiting from the increase of bus tolls in the notice on adjusting the tolls of expressways in our region issued by Guangxi Expressway Management Bureau in August 2014, and the overall flow of highway vehicles in the area under the jurisdiction of the company increased steadily, and highway tolls increased by 8.52% compared with the same period last year. In addition, the company has determined the development goal of "returning to the main business", and will expand and strengthen the main highway operation, on the one hand, acquire existing high-quality and mature highway assets, on the other hand, raise funds to build new highways.
The company will also actively tap the operating potential of assets along the highway company and re-invite tenders for the Tanbai Road service area, so as to increase rental income and broaden the sources of pipeline leasing and advertising revenue.
Vigorously develop the logistics industry: the proposed cross-border e-commerce platform, or related to intelligent transportation, cold chain areas.
The company disclosed on January 28, 2016 that it would start the cross-border e-commerce platform project, and planned to make use of the existing resources of the company's holding subsidiaries Nanning Jinqiao Agricultural products Co., Ltd., Guangxi Pingxiang Wantong Logistics Co., Ltd. and the company's highway resources to create an e-commerce public service platform, speed up cross-border e-commerce cooperation with Southeast Asian countries, and work with neighboring ASEAN countries to build a cross-border e-commerce integrated service platform. Realize online trading and offline cold chain distribution of high-end food and agricultural products to ensure convenient and safe transactions. The company announced that it is currently exploring the development of intelligent transportation and will take the initiative to contact universities or scientific research institutions to study the use of highway network data to build a large logistics information platform and develop big data industry.
We believe that the difficulties facing the development of traffic big data lie in the acquisition of data and its reliability, the matching of analysis and prediction models and the later development and utilization model. As the listing platform of the provincial Jiaotong Investment Company, the company is rich in traffic flow data and information resources in the autonomous region.
It can be predicted that the company will be able to apply the results of data research to the field of combining its own high-speed with the logistics park to enhance the user experience and improve the level of highway management, so as to play a positive role in the scientific and rational layout of the logistics park industry and the introduction of logistics park flow. The company is currently actively promoting the implementation of the project, which we will pay close attention to.
The examination and approval of Beibu Gulf Free Trade Zone has entered the sprint stage. If the Beibu Gulf Free Trade Zone is approved, the company will directly benefit from the target, and the economic and trade development of Guangxi will be the direct driving force of the company's performance: in terms of highway plate, Tanbai Road is an important transportation trunk line in southwest China. As a convenient channel linking Guangxi and Guangdong, Cenluo Road has remarkable geographical advantages and good profit prospects. In terms of the logistics park plate, Jinqiao Logistics Park is the largest agricultural trade products trading center in the province, and the Beibu Gulf Frozen goods Trading Center will be opened in the future, while Pingxiang Logistics Park is located in the throat of the border traffic between China and Vietnam. It is an important node of ASEAN trade and the largest logistics park in South China. It will be affected by the superposition effect of Beibu Gulf Free Trade area and ASEAN Free Trade area. In terms of the real estate sector, the company has the right to develop several pieces of land in Qinzhou, the core area of the Beibu Gulf, and plans to actively cooperate with mature developers in the future to promote the development progress in a timely manner.
Profit forecast and valuation: considering the gradual divestiture of the company's mineral business, the company's business will turn into profit this year; with the emergence of the third batch of free trade zones, the company's high-speed charging, logistics, real estate and other sectors are expected to take a policy spring breeze; and the company's new business development direction is feasible, it is expected that in 2016-2018, EPS will be 0.07,0.19 and 0.39 yuan respectively, covering and giving a "recommended" rating for the first time.
Risk Tips:
The progress of highway competition, railway competition and Beibu Gulf Free Trade Zone is not as expected.