The leading enterprise of intelligent shipping, the transformation of enterprises with digital intelligence. The company is the scientific, technological and digital carrier of COSCO Shipping Group, the largest shipping enterprise in China, deeply ploughing the three major areas of intelligent transportation, intelligent shipping and intelligent logistics (accounting for 68%, 16% and 16% respectively in 2022). The company's operating income increased from 980 million yuan to 1.75 billion yuan, with a compound growth rate of 16%, and its net profit increased from 83 million yuan to 182 million yuan, with a compound growth rate of 22%. We believe that with the vigorous development of shipping digitization, the company relies on the abundant resources and rich data of shareholders and has broad prospects for development.

The policy promotes the maturity of overlay technology, and COSCO Group takes the company as the carrier to build a global supply chain platform.

The national policy drives the deep integration of advanced technology and the transportation industry, promotes the sustainable development of intelligent shipping, the successful research and development of superimposed high-throughput satellites reduces the cost of shipping communication, and the rapid development of shipping digitization is timely.

Cosco Group is the largest maritime shipping company in China, with a fleet size of 2.94 million TEU/465 as of June 30, 2023, ranking first in the world. In 2022, it is established to promote the construction of global digital supply chain platform as the strategic goal, and strive to create a world-class global integrated logistics supply chain service ecology, the company may be the core carrier.

Smart shipping: connect the shipping supply chain with data and promote the potential mining of data elements. Based on the group's rich business database, the company's digital products cover all the ships of the group, ensuring the safe driving of the fleet and reducing costs and efficiency. Relying on the group's rich data platform, the company's "Chuanshibao" platform series products, with intelligent scheduling, carbon emissions measurement and other multi-scene functions. We believe that the company has developed intelligent digital products from rich business data, which can reverse provide more high-quality data and services, form a good data closed loop, and have accumulated rich, mature and high-value data assets.

Investment suggestion: the company is the digital service provider of the largest shipping group in China, and the internal demand of the group is strong in 2023. Maritime data is an important reference for global trade and economy, and there is a broad space for data value.

It is estimated that the 2023-2025 income will be 3.06 billion yuan, and the net profit will be 2.2 million yuan, which is corresponding to the valuation of PE in 44-35-28. Coverage for the first time, giving a "overweight" rating.

Risk tips: digital transformation is not as expected; R & D is not as expected; market competition is intensified.