Event

The company recently released its mid-2023 report, with operating income of 2.671 billion yuan during the reporting period, a decrease of-4.3% over the same period last year, and a net profit of 187 million yuan, an increase of 7.3% over the same period last year. The diluted EPS disclosed in the semi-annual report was 0.20 yuan, and the diluted ROE was 2.9%.

Comment

In the first half of the year, the company's revenue declined, but its net profit increased. We speculate that it may be a strategy to optimize the supply structure of logistics, which has achieved results. The business data for the reporting period are as follows:

> > Port and shipping logistics plate, the company operates Xinghua Port, Hong Kong Wharf, Yunfu New Port, Wuzhou Port, Guiping Xinlong and other docks. in the first half of the year, the cargo throughput was 8.03 million tons (- 7.8%), 7.27 million tons (+ 52.3%), 2.842 million tons (- 10.3%), 3.51 million tons (+ 21%) and 1.52 million tons (+ 232%), respectively. The company's shipping business has been put into operation with a total of 64 ships, with bulk cargo transport of 7.69 million tons (+ 40%), container transport of 203 thousand TEUs (- 23%) and multimodal transport of 1.9 million TEUs (- 19%) in the first half of the year. The proportion of revenue in this sector is 46.8%, the gross profit is 40%, and the gross profit is 21.3%. The net profit was greatly increased due to the sharp increase in gross profit margin.

> > in the new energy sector, the total installed capacity of wind power is 410000 kilowatts, with an operating profit of 80 million yuan (+ 18.1%) in the first half of the year; photovoltaic holding has a total installed capacity of 33.5 megawatts, with a generating capacity of 18.15 million kilowatt-hours; the gas pipeline has completed 458km, achieving 64.67 million standard gas sales (+ 2.8%). Xiuqiang has provided BIPV components and glass proofing for construction projects in Jiangsu and Guangdong. This sector accounts for 42.8% of revenue, 48% of gross profit and 28.4% of gross profit.

Investment rating

The company promotes the two-wheel coordination system, overlays the ESG strategy, implements share repurchase, optimizes the supply chain structure and other work, has shown a beautiful performance, we maintain the "overweight" rating.

Risk hint

The economic growth of the port hinterland is not as fast as expected, and the progress of new energy projects is slow.