The company continues to benefit from the trend of industry consolidation, through active mergers and acquisitions, consolidate and expand resource advantages, increase market share, short-term performance by the impact of the industry boom does not change the long-term growth potential energy.

Integrated service platform for cross-border export of small and medium-sized chemical enterprises. Since its establishment, the company has deeply ploughed the field of cross-border chemical logistics, and has its own service team and service platform resources located in Ningbo, Jiaxing, Yiwu, Taicang, Shanghai, Qingdao, Tianjin, Hong Kong, the United States and other places. in the country, it owns and manages more than 500000 square meters of scarce land resources with superior geographical location, convenient transportation conditions and meeting the requirements of cross-border logistics, and is equipped with more than 200 professional dangerous chemicals transport vehicles in different bases. It has formed a national development pattern with the Yangtze River Delta as the core base, covering East China, North China, Central China and other major domestic chemical industry clusters. Cross-border chemical logistics supply chain service is the company's main business, accounting for 90% of the company's total revenue in 2022. The company's historical performance has maintained rapid growth, with an average annual compound growth rate of 35% in 2017-22.

Based on East China, enter the country, collect mergers and acquisitions to help the company expand rapidly. From the perspective of the industry: under the background of increasingly stringent supervision of the industry, professional head enterprises with a history of safe operation, recognized by customers and rich in warehousing and transportation resources are expected to benefit from the integration trend of the chemical logistics industry. From the company's own point of view: based on the company's comprehensive supply chain service advantages, location advantages, and with the help of mergers and acquisitions, the company's resource advantages are continuously strengthened, the operation scale is growing rapidly, and the long-term growth potential is sufficient. By the middle of 2023, the company independently managed nearly 100000 square meters of qualified and advantageous storage base for dangerous chemicals; in the first half of the year, the number of service boxes in the company's cross-border chemical logistics supply chain increased by 32% compared with the same period last year, countering the trend in the face of weak prosperity in the industry. In addition, the company is actively expanding new categories, extending the industrial chain, looking for new growth points, including the export of new energy vehicles, refrigerant & pesticide deployment.

Maintain the "highly recommended" investment rating. 2023H1's performance declined compared with the same period last year, on the one hand, due to the low prosperity of the shipping market, the operation of the major shipping and comprehensive freight index at a low level, and the decline in overall market demand, on the other hand, the base was higher in the same period last year. We expect that under the background of the sharp drop in shipping prices compared with the same period last year and the resumption of production across the country, the company's operating price per box will be lower than the same period last year, which will have an impact on the company's short-term performance, but the company will continue to expand its market share by virtue of its advantages in professional operation and resources, laying the foundation for long-term growth. We maintain the company's profit forecast for 2023-25, and estimate that the net profit of return to the mother will be 2.5 million, 3.4 billion yuan, respectively. Based on our earnings forecast, the company's current share price corresponds to 2023-25e Ppace E in 15-11-9, maintaining the company's "highly recommended" rating.

Risk tips: downstream chemical industry risk; safety operation risk; policy risk; the company receives mergers and acquisitions, business development is not as expected; the company has more restricted shares or the risk of stock price fluctuation.