occurrences

Recently, the company released its 2023 interim report. During the reporting period, it achieved operating income of 6.93 billion yuan, a year-on-year increase of +9.9%, and net profit of 320 million yuan, a year-on-year increase of +26.1%; the diluted EPS disclosed in the semi-annual report was 0.25 yuan, and the diluted ROE was 4.65%.

reviews

During the reporting period, the main business segments were as follows:

>Road special container business, including all kinds of dry bulk containers, tank containers, refrigerated boxes, coil steel boxes, etc. In '22, the company researched the increase in white goods transportation throughout the route as a starting point, and set up a white goods leading group to strengthen market development efforts. 23 In the first half of the year, container delivery volume increased 3.4% year on year, revenue increased 35.7%, and gross profit increased 39.8%. Some categories have seen significant results, such as vegetable oil and ethylene glycol, which have increased 80% and 30%, respectively.

This business is also the company's core business. The gross margin gradually increased from 17.6% in '21 to 28.2% in 23H1, driving an increase in the company's overall profit. During the reporting period, the gross profit of this business was $310 million, accounting for 60% of the gross profit contribution.

Railway freight and port logistics services revolve around the Shaba Railway branch line and Yingkou to carry out extended logistics services such as railway freight, warehousing, and short-distance transportation. In the past two years, gross margin has also increased slightly. During the reporting period, the gross profit of this business was 160 million yuan, the gross profit contribution accounted for 31.5%, and the gross margin was 19.9%.

In the supply chain sector, the types of goods are mainly large customers such as steel. During the reporting period, the gross profit amount was 0.4 billion yuan, the gross profit contribution accounted for 7.6%, and the gross profit margin was 0.8%.

Investment ratings

In the first half of the year, the company built about 5,000 new special boxes of various types. We are optimistic about the company's efforts to launch special boxes, enhance customer stickiness, and increase performance, and continue to give “increased holding” ratings.

Risk warning

The economic growth rate in the hinterland of Lingang fell short of expectations, and demand for railway transportation was slowing down, etc.