Beibu Gulf Port announced 2023H1 results: the company achieved revenue of 3.176 billion yuan, an increase of 5.27% over the previous year; the net profit of Guimu was 605 million yuan, an increase of 9.22% over the previous year.

In the first half of the year, the company's net profit to parent was +9.22% year-on-year, and throughput increased steadily. In the first half of the year, the company achieved revenue of 3.176 billion yuan, an increase of 5.27% over the previous year; net profit for the return was 605 million yuan, an increase of 9.22% over the previous year.

In the first half of the year, the company's cargo throughput totaled 149.1066 million tons, an increase of 7.62% over the previous year. Of these, the number of containers completed 3.6074 million TEUs, an increase of 13.98% over the previous year. According to statistics from the Ministry of Transport, from January to June of this year, Beibu Gulf Port ranked 9th among coastal ports in the country; among them, container throughput ranked 8th among coastal ports in the country, and continued to maintain a leading position among the top 10 coastal ports in the country in terms of growth rate. In terms of profit margin, the company's comprehensive gross profit margin for the first half of the year was 35.81%, up 0.13 percentage points from the previous year; the return net profit margin was 19.05%, up 0.69 percentage points from the previous year.

The “Belt and Road” continues to deepen, and capital investment helps improve port and shipping operation capabilities. 1) The geographical advantage is remarkable, and it is expected to fully benefit from the “Belt and Road”. Guangxi Beibu Bay Port is located in the four major economic circles of the Pan-Beibu Gulf, the Pan-Pearl River Delta, the Great Southwest, and the Ten Southeast Countries. As the most convenient port of entry to the sea in southwest China, along with the opening of the Pinglu Canal and the continuous deepening of the “Belt and Road” construction of the Southwest China Land and Sea Corridor, the transit volume of Beibu Bay Port can be expected over a long period of time. 2) The deepening trend of industrial transfer drives economic development in the hinterland. The hinterland of the Beibu Gulf Port market includes Guangxi, Yunnan, Sichuan and Chongqing. Under the major trend of industrial transfer from the eastern coastal region, the hinterland economy has achieved rapid development, which is conducive to the company's long-term cargo volume growth. In recent years, the company has continued to improve port operation capacity by expanding capital expenditure to provide infrastructure guarantees for long-term throughput growth. As of 2022, the company's port transit capacity reached 333 million tons, of which the container transit capacity reached 7.7 million TEUs, and the port's operating capacity has been steadily increasing.

Investment suggestion: As the best port of departure for the southwest region, Beibu Gulf Port also benefits from the westward shift of industry and deepening trade with ASEAN. The hinterland economy is developing rapidly, and long-term cargo volume growth can be expected. The company still has good growth potential among major port enterprises. We maintain the company's profit forecast and expect net profit of 11/12/14 billion yuan in 23-25 to be 11/12/14 billion yuan respectively, maintaining the “Highly Recommended” rating.

Risk warning: Macroeconomic decline exceeding expectations, major public safety incidents, industry fee policy adjustments.