Summary of events: the company released three quarterly reports on October 22, 2019. From January to September 2019, the company achieved main business income of 519 million yuan, year-on-year + 0.03%, and net profit of 103 million yuan,-20.18%, and deducted non-return net profit of 88 million yuan, year-on-year-1.87%.
Affected by non-recurrent factors, the performance in the first three quarters decreased compared with the same period last year, and the performance in the third quarter improved compared with the same period last year. According to the company's three-quarter report, the company achieved a net profit of 103 million yuan in the first three quarters of 2019,-20.18% compared with the same period last year. The main reason is that in the third quarter of 2018, the company completed the establishment of a joint venture company with a 49% equity stake in Nanjing Port Qingjiang Wharf Co., Ltd. evaluate the added value to generate investment income, which will no longer be available in 2019. In the third quarter of 2019, the company achieved 180 million yuan in main business income, + 4.41% year-on-year, and 33 million yuan in net profit after deducting non-return to the mother, which was + 5.77% compared with the same period last year. In the first three quarters of 2019, the company's net profit after deducting non-return was 88 million yuan, a year-on-year decline of-1.87% compared with H1 (- 5.92%) in 2019.
A river-sea transit hub port dominated by petroleum liquefied chemicals and container transportation. The company is mainly engaged in the port service-related business of Nanjing Port, which is located in the west of the Yangtze River Delta, mainly engaged in crude oil, oil products, liquid chemicals and containers. Among them, the container plate business is operated by the holding subsidiary Longji Company, which completed the acquisition of 54.71% equity of Longji Company on November 30, 2016, and the shareholding proportion increased to 74.88%. Longji Company was incorporated into the scope of the statement.
According to the semi-annual report, the completed loading and unloading capacity of the liquefied plate of H1 Company in 2019 is 7.3 million tons. After deducting the factor that Qingjiang terminal is no longer included in the scope of the report, the comparable caliber is + 5.1% compared with the same period last year, and the completed income of liquefied plate is 98 million yuan, which is-0.4% compared with the same period last year. In 2019, the loading and unloading volume of H1 container plate was 1.75 million TEU, which was + 2.90% compared with the same period last year. The revenue of H1 container plate was 240 million yuan, and the gross profit of H1 container plate and liquefaction plate accounted for 71% and 29% of the gross profit of main business respectively in 2019.
Investment advice: it is estimated that in 2019-21, the company's EPS will be 0.27, 0.28, 0.30 respectively, giving the company an "overweight" rating for the first time. Taking into account the positive impact of the economic development of the hinterland of the Yangtze River Delta and downstream demand on the company's cargo throughput, we estimate that the company's total revenue in 2019-21 will be about 7.26 million yuan, respectively. The year-on-year figure is about + 1.2%, 4.6%, 4.3%, respectively. The net profit of homing is about 1.31 million yuan and the corresponding EPS is 0.27 yuan and 0.28 yuan respectively. According to the closing price of 7.10 yuan per share on October 24, the corresponding PE for 2019-21 is 2019 times higher than that of 26-25-24, giving the company an "overweight" rating for the first time.
Risk tips: macroeconomic downturn, throughput growth is lower than expected; the impact of surrounding port diversion; changes in port charging policy.