A pioneer in third party logistics for the manufacturing industry. Established in April 1993, Jiangsu Feilida International Logistics Co., Ltd. is a modern logistics service provider focusing on providing integrated supply chain management for intelligent manufacturing enterprises. The company started as a freight forwarder and gradually developed into a third-party logistics service provider for the manufacturing industry. In 2019, it proposed to become an “intelligent manufacturing supply chain management expert driven by data technology”.
The trillion-dollar logistics market under the trend of domestic substitution of manufacturing. Domestic substitution of manufacturing is showing an accelerating trend, while the development of advanced manufacturing requires support from modern service industries such as logistics, and the logistics market has broad scope for development.
According to Wind data, global third party logistics revenue in 2018 was 870 billion US dollars, of which China's third party logistics revenue was 203.2 billion US dollars.
The company has a certain competitive advantage. The company has strong technological genes. Through R&D investment, it brings intelligent, digital, visual and other system solutions, saves costs and has replication capabilities; it can solve the complete logistics needs of manufacturing enterprises, ensure stable timeliness and service quality throughout the chain, and solve the pain points of manufacturing logistics to a certain extent.
Profit forecasts and investment recommendations. The company's EPS for 2020-2022 is expected to be 0.12, 0.16, and 0.21 yuan, and the PE corresponding to the company's closing price on August 20, 2020 (5.92 yuan) is 51, 36, 28 times. Companies that replace domestic manufacturing are developing well. Taking Lixun Precision as an example, a large number of new orders from consumer electronics drove a sharp increase in the company's revenue and profit. In 2019, operating revenue was 62.5 billion yuan, an increase of 74% over the previous year, and Guimo's net profit was 4.7 billion yuan, an increase of 73% over the previous year. The domestic substitution trend in the manufacturing industry is expected to bring new development opportunities to Feilida. The company also mentioned “in-depth service to major brand customers, especially leading domestic substitution companies” in its development strategy. If the company can seize this opportunity and obtain continuous growth in logistics orders from leading domestic substitution companies, then business performance is expected to continue to improve. Continued follow-up is needed to maintain the company's “prudent increase” rating.
Risk warning: Macroeconomic downturn, manufacturing sentiment declining, land and labor costs rising, business development falling short of expectations, risk of asset impairment and loss of bad debts
