1. IPO purchase suggestions:
According to Drury's data, based on 2012 throughput, the company is the world's largest public terminal operator for bulk dry bulk cargo; at the same time, the Qinhuangdao port operated by the company is the world's largest coal port, accounting for about 31.9% of the total amount of coal launched in China's coastal ports in 2012. The Qinhuangdao Port and Huanghua Port terminals operated by the company and the Caofeidian Port pier operated by the joint company are all located in the Bohai Rim region. Among them, Qinhuangdao Port has a history of operating for over 100 years; Caofeidian Port and Huanghua Port are in a stage of rapid development, expanding the company's hinterland coverage, which is expected to become the main driving force for the company's future business growth. The company and associated companies currently operate a total of 62 berths, with total throughput of 309.94 million tons, 349.56 million tons, 336.07 million tons, and 182.56 million tons for the years ending December 31, 2012, and 182.56 million tons for the years ending 2013/6/30, respectively.
The company provides customers with integrated terminal services and maintains long-term business partnerships with major customers, including Shenhua Group, China Coal Group, Tongmei Group, Yitai Group, Guodian Group, Zhejiang Neng Fuxing and Datang Group. The company's business grew rapidly during the business record period. Looking ahead, the company plans to continue to strengthen its position as the world's largest bulk dry bulk public terminal operator. For the years ended 31 December 2010, 2011 and 2012 and the six months ended June 30, 2013, the company achieved total revenue of RMB5.11 billion, RMB5.73 billion, RMB6.25 billion and RMB3.39 billion respectively. Profits belonging to shareholders of the parent company during the same period were RMB1.1 billion, RMB1.06 billion, RMB1.4 billion and RMB1.2 billion, respectively.
According to the prospectus, based on twice the profit for the first half of 2013, the prospectus price of HK$5.25-6.70 is equivalent to the predicted price-earnings ratio of 7.4 times to 9.4 times. The company's consolidated net tangible assets adjusted for unaudited exam preparation were HK$3.07 and 3.28, and the corresponding PB was 1.7 and 2 times higher than the industry average. We recommend careful purchasing.