Event: according to the company's 2018 interim report, the net profit attributable to the owner of the parent company in the first half of 2018 was 338 million yuan, an increase of 48.01% over the same period last year; operating income was 4.615 billion yuan, up 79.80% over the same period last year; and basic earnings per share was 0.23 yuan, an increase of 4.55% over the same period last year.
Relying on the transportation advantages of covering coastal areas and along the Yangtze River, the company has actively expanded the railway and highway network in recent years. At present, supported by the integrated logistics information platform, by accelerating the expansion and docking of relevant resources of freight railways and surrounding logistics stations, and constantly extending inland, an integrated multimodal logistics network has been initially established. The container ship capacity of the company ranks 17th in the world and ranks second among domestic container logistics enterprises in the country.
Waterway plate
As of June 30, 2018, the company has set up 89 shipping outlets across the country, involving 172 business ports. At the same time, thanks to the increase in capacity, the number of ports attached to the company's route network has increased to 172, and the throughput of domestic trade containers ranks in the top three among 74 major ports, and ranks first in Haikou, Shihu, Huangdao, Nansha and Huangpu Laogang. At present, the company's main domestic routes 47, international logistics routes 5, domestic routes basically cover the main domestic ports.
Railway plate
By June 30, 2018, the company has set up 22 railway networks, including Harbin, Zhengzhou, Xi'an, Guiyang, Urumqi, etc., with more than 848 direct railway lines and more than 600 sea rail lines, involving 672 business railway stations. railway services cover 155 cities in 31 provinces. The company invested and participated in Beijing Antie supply chain Management Co., Ltd., starting with railway special box service, in-depth development of high value-added logistics projects for customers such as bulk and chemical industry. It is worth noting that the 2017 annual report revealed that sea-rail intermodal transport accounted for 33% of the freight volume of the railway sector.
Multimodal transport logistics base
As of June 30, 2018, the company has set up a total of 15 collection outlets, 6 resident projects, 11 pledge warehouses and 7 cold chain warehouses. The company intends to speed up the construction of logistics base through additional issuance.
Highway plate
The company cooperates with more than 1500 fleets across the country and has more than 25000 deployable freight trailer resources. The cooperative fleet should also comply with the relevant laws and regulations of the country in terms of exhaust emissions.
Investment rating
The company had a three-year performance commitment when it completed a major asset restructuring in 2016, while actual earnings exceeded commitments by 8.88% and 16.43% in 2016-2017. According to the disclosed 2018 semi-annual report data, more than half of the performance is more than half of the time, we believe that the completion of the third year performance commitment is a high probability event. At present, the company plans to issue an additional 3.295 billion for the construction of two multimodal transport bases (Jingtang Port area of Tangshan Port and Shihu Port area of Quanzhou Port) and purchase 10 644TEU vessels to continue to expand the multimodal transport territory. We are optimistic about the business expansion in line with the logistics policy direction. It is estimated that the return net profit (million) in the next three years will be 788,940,1132 PE respectively, and the corresponding EPS will be 16.2,13.6 and 11.3 times, respectively.
Risk hint
Industrial growth is lower than expected, costs are rising faster than expected, and government subsidies are falling too fast.
