Xiamen ITC is a supply chain manager focusing on large supply chain management, financial services, medical and health care.

The ownership structure is stable and the organizational structure is constantly upgrading. Establish a "whole industry chain model" to cover commodity industry chain services through service income, financial income and transaction income. Focus on the core business of supply chain management and actively expand the emerging business of health science and technology.

In the first half of 2023, the company realized operating income of 269.63 billion yuan, an increase of 2.93% over the same period last year; the net profit belonging to shareholders of listed companies was 1.578 billion yuan, down 12.03% from the same period last year; the rate of return on net assets was 4.60%, and the dividend lead was comparable to the company. Xiamen ITC dividend ratio and cash dividend ratio have increased in recent years. On June 30, 2023, Xiamen ITC dividend yield was 8.40%, ahead of comparable companies.

The future development direction of Xiamen International Trade includes: increasing income scale by expanding health science and technology business, increasing domestic market share and expanding overseas layout; through the expansion of supply chain service links to the upstream and downstream of enterprise production, numerical intelligence to improve the integration efficiency of logistics capital flow and information flow to increase gross profit.

Core competencies and major highlights include accelerated overseas development and high dividends brought about by high dividend yields under growth. In terms of income increase, optimize the business structure and make joint efforts for domestic and overseas business: ① constantly adjusts its strategic positioning and business content, expands and increases the health technology business segment; in the ② supply chain management business, the core category continues to grow, and the incremental space comes from the increased concentration of domestic commodity industry leaders. With the expansion of ③ 's overseas market, it has established stable cooperative relations with more than 170 countries and regions and more than 80,000 upstream and downstream customers in the industrial chain. In terms of profit expansion:

① business layout focuses on supply chain business development and accelerates category optimization; ② industry chain layout makes another breakthrough to promote supply chain integration services; ③ ITC cloud chain, as the intelligent logistics platform of Xiamen International Trade, expands the digital application scene of Xiamen International Trade in the supply chain and accelerates the process of digital transformation.

Profit forecast and company rating: Xiamen ITC is actively transforming its business layout from the real estate industry to the medical and health sector, while focusing more on the overseas layout development of the supply chain business.

With the help of domestic policy support, it will lead to the expansion of the commodity market and the increase of the market share of the leading enterprises. Due to the fluctuation of commodity prices in the first half of 23, we adjusted the company's 2023-2025 net profit from 3.36 billion yuan / 3.73 billion yuan / 4.33 billion yuan to 3.28 billion yuan / 3.73 billion yuan / 4.31 billion yuan, corresponding to a PE of 4.6max 4.0max 3.5, maintaining the company's "buy" rating.

Risk tips: commodity price fluctuation risk, policy change risk, operation management risk, exchange rate risk.