Event

The company recently released its mid-2023 report, with an operating income of 579 million yuan, an increase of 47.5% over the same period last year, and a net profit of 88 million yuan, an increase of-2.6% compared with the same period last year.

Comment

The company has been engaged in liquid dangerous goods transportation business for more than ten years, gradually covering Bohai Bay, Yangtze River Delta, Pearl River Delta, Beibu Gulf and other major domestic chemical production bases. With the development of the company's international business, transportation routes continue to expand to Southeast Asia, Northeast Asia and other regions. At present, it is one of the leading domestic liquid chemical shipping enterprises.

As of June 30, 2023, the company has controlled a total of 37 ships (including 6 ships that are undergoing handover and transformation procedures) with a total capacity of 279000 deadweight tons, including 27 domestic chemical tankers with a total capacity of 172000 deadweight tons, 5 finished oil tankers with a total capacity of 51000 deadweight tons, and 5 foreign trade chemical ships with a total capacity of 57000 deadweight tons. There are also 3 ships under construction with a total capacity of 15000 deadweight tons. The company's main business, to water transport of dangerous chemicals and oil-based. During the reporting period, the main performance was split as follows:

"the revenue from chemical transportation is 530 million yuan, an increase of 59.5% over the same period last year; this income accounts for 91.5% of the total revenue. Of this total, the waterway transport volume of liquid chemicals in domestic trade was 2.488 million tons, an increase of 4.5% over the same period last year.

Revenue from oil transportation totaled 50 million yuan, an increase of 37.1% over the same period last year. Of this total, the waterway transport volume of domestic trade oil products was 335000 tons, an increase of 18.7% over the same period last year.

Investment rating

Recently, the company has received approval from the Ministry of Communications for "retreating one into one", which shows that the company continues to optimize the ship age structure and actively layout the overseas transportation business of dangerous chemicals LPG. We are optimistic about the future development of the company, covering for the first time and giving an "overweight" rating.

Risk hint

The decline in demand in the chemical industry chain exceeded expectations, and safety accidents occurred in dangerous chemicals.