Event: the company released its semi-annual report in 2023. In the first half of 2023, operating income reached 687 million yuan, an increase of 6.94 percent over the same period last year, of which Q1 realized operating income of 261 million yuan, a decrease of 14.71 percent over the same period last year and an increase of 26.41 percent on Q2. In the first half of the year, the net profit of home ownership reached 140 million yuan, an increase of 58.26% over the same period last year, of which Q1 net profit was 66 million yuan, up 69.23% over the same period last year. Q2 net profit was 74 million yuan, an increase of 51.02% over the same period last year.

Comments:

Business performance is stable and far away, and two-wheel drive is promising. In the first half of the year, the company had a small increase in revenue and a slight drop in cost, but a big increase in net profit, mainly due to the company's "traditional + wisdom" two-wheel drive strategy: in traditional logistics, the company actively expanded its business direction. On the basis of ethylene glycol business, it successfully expanded the aromatics and oil business, and at the same time increased efforts to procure goods, resulting in a substantial increase in warehousing business income. In terms of intelligent logistics, the company further extends the service chain of the industrial chain, expands the intelligent logistics business, and the contribution of the intelligent logistics plate to the company's profits continues to increase.

Warehousing firmly occupies the leading position, and the location occupies all the golden way. The subsidiary Changjiang International has its own berths on the Yangtze River shoreline of 50,000 tons and 30,000 tons, and there are two inland river cross ports with an annual throughput of 4.5 million tons. Changjiang International has 214self-owned storage tanks with a tank capacity of 1.1079 million cubic meters. It has become one of the leading liquid chemical storage enterprises in China, and the imports of ethylene glycol and diethylene glycol rank first in the country all the year round. The company relies on the golden waterway of the Yangtze River, water transport liquid chemical products through the Yangtze River, through the East China Sea, radiation in East China.

Smart logistics directly hit the pain points of the customer group, and the "multi-financing" service helps SMEs to finance. The company independently develops the Yangtze River international online warehousing intelligent logistics service platform to solve the pain points of traditional offline paper warehouse order delivery, and to achieve safe, convenient, traceable and anti-counterfeiting online delivery. At present, the online delivery rate has reached 100%. On this basis, the subsidiary cooperates with the Shanghai Clearing House to launch the clearing service to realize the multi-bank payment and settlement function of simultaneous delivery of goods and funds. And according to customer needs to launch "digital financing" services for small and medium-sized enterprises to provide high-efficiency, low-cost full-process online financing services.

Sit on the commodity delivery warehouse to enhance the competitiveness of the company. Changjiang International is a subsidiary of Dalian Commodity Exchange Ethylene Glycol Futures bonded delivery Library and Zhengzhou Commodity Exchange methanol Futures delivery Library. Subsidiary Foreign Service Company is Zhengzhou commodity trading PTA, cotton and ferrosilicon, manganese silicon futures delivery warehouse, the above delivery warehouse helps to improve the company's customer trust, enhance customer stickiness, consolidate and promote the development of warehousing business, and further improve the company's profitability and market competitiveness.

Profit forecast: for the first time to cover the "overweight" rating. It is estimated that from 2023 to 2025, the operating income of the company will be 1.307 billion yuan, the net profit of return to the mother will be 2.45 billion yuan, and the corresponding PE will be 19.61x/16.89x/13.25x.

Risk hints: domestic and foreign macro-environmental fluctuations exceed expectations, business and management risks, production safety risks, tax preferential policies change risks