Key points of investment
Next Tuesday (November 21), “Jin Jiang Shipping”, a company listed on the Main Board, asked for a quote.
Jin Jiang Shipping (601083): The company is mainly engaged in international and domestic container shipping business; the company achieved operating income of 3.430 billion yuan/5.372 billion yuan/6.840 billion yuan in 2020-2022, YOY in that order was 2.71%/56.64%/27.32%, and the compound annual growth rate of the three-year operating income was 27.00%; achieving net profit of 465 million yuan/1,226 million yuan/1,827 billion yuan, YOY in that order was 32.57%/163.48%/49.00%, The compound annual growth rate of net profit for three years was 73.30%. In the latest reporting period, the company's revenue from January to September 2023 was 3,956 billion yuan, down 23.33% from the same period last year; realized net profit was 698 million yuan, a year-on-year decrease of 52.95%; the company is expected to achieve net profit of about 850 million yuan to 1,100 million yuan in 2023, a year-on-year decrease of 45.26% to 53.48%.
Investment highlights: 1. The controlling shareholder SIPG empowers natural port advantages, and the company currently has strong competitiveness in the Northeast Asian container shipping market. In 2022, the container throughput of Shanghai Port exceeded 47.3 million TEU, ranking first in the world for 13 consecutive years; the company is the only international container liner shipping company within the Shanghai State Assets Administration Commission system. Relying on the controlling shareholder SIPG Group, it has a natural port advantage in the context of major global shipping companies strengthening port and shipping integration. Relying on Shanghai seaports, the company mainly operates Asian and domestic routes. In 2020-2022, the market share of the Shanghai-Japan route and the Shanghai cross-strait route ranked first in the industry; according to Alphaliner, the company currently ranks 6th in mainland China and 33rd in the world in terms of total container liner capacity. 2. The company's new capacity plan focuses on the Southeast Asian market, and may be expected to benefit from the rapid growth of the Southeast Asian market under trends such as the “Belt and Road” and regional industrial transfer. The container shipping market in Southeast Asia has a large stock and is growing rapidly. Currently, it is still in a stage of rapid growth. It is currently one of the best segmented tracks in the shipping industry.
According to estimates of the proposed cargo ship to be purchased disclosed in the prospectus, the company's capital raising plan is to add 13,200 TEU of capacity to Southeast Asia, an increase of about 70% over the current capacity. Strengthening the layout in Southeast Asia through measures such as encrypting existing routes and expanding new routes may be expected to benefit more in the future from the rapid growth in demand in the Southeast Asian container shipping market under the “Belt and Road”, RCEP and regional industry transfer trends.
Comparison of listed companies in the same industry: According to the similarity of main products and revenue structures, COSCO Marine, Ningbo Yuanyang, Haifeng International, and Zhonggu Logistics were selected as comparable listed companies of Jinjiang Shipping. Judging from the comparable companies mentioned above, the comparable PE-TTM (arithmetic average/excluding Hong Kong stocks) is 15.68X, but considering the differences in business and scale, we tend to think that the comparability of this comparable PE-TTM is limited; the average revenue scale of comparable companies is 103,537 billion yuan, and gross sales margin is 33.92%; in comparison, the company's revenue scale falls short of the average of comparable companies, and the company's gross margin level is higher than the average of comparable companies.
Risk warning: There is still a possibility that companies that have begun the inquiry process will not be able to go public due to special reasons; company content is mainly based on the content of prospectus and other public information; there is a risk that the selection of listed companies in the same industry is not accurate enough; there may be interpretation deviations in the selection of content data. The specific risks of listed companies are shown in the text.