The company issued an announcement and once again won the bid for Xiyin Company's important project. The company will provide warehousing and distribution services, generating annual revenue of about 300 million yuan.
The company won the bid for Xiyin's important warehousing and distribution project. According to the company's announcement, the company recently received two “Notice of Winning Bid” from a wholly-owned subsidiary of Xiyin Company. The company will provide Party A with warehousing and distribution services at logistics centers in Foshan, Zhaoqing, and Heshan in Guangdong Province. This service contract includes, but is not limited to, warehousing (receipt points of goods, listing, return, warehouse handling, reverse reception, abnormal handling, operation management, etc.), transportation (loading and unloading trucks, cargo transportation, etc.) and other related services. The company provides a logistics center of about 130,000 square meters, and the business volume is expected to be about 1.6 million pieces/day of integrated warehousing and distribution services. The contract period is 2 years from the date of signing the contract (initial 1 year+1 year automatic renewal without objection), and the contract is estimated to generate annual revenue of about 300 million yuan.
Continuing to expand the cross-border e-commerce business, it is expected that the industrial chain will be further expanded in the future. With 2024Q1, the company achieved operating income of 291 million yuan, up 0.17% year on year, net profit of 65 million yuan, up 52.06% year on year; gross profit margin was 39.8%, up 13 percentage points year on year, and net interest rate to mother was 22.4%, up 7.7 percentage points year on year. Benefiting from the full commissioning of Ka Shing International Port, the company's Q1 performance increased significantly. At present, the company has reached cooperation with the world's four well-known cross-border e-commerce platform companies. The company provides warehousing services for cross-border e-commerce in an area of more than one million square meters, and is expected to continue to invest in new production capacity within the next 5 years.
Looking ahead to the full year of 2024:1) Jiacheng International Port will fully release profit growth this year; 2) The company's Haikou warehousing project is expected to be put into use during the year, mainly for duty-free logistics services, which may contribute profits in the second half of the year; 3) The company is expected to continue to deepen and expand the cross-border e-commerce customer service chain to undertake more air transport services and customs services for customers.
Maintain a “Highly Recommended” rating. The company is based on high-quality high-standard warehouse resources, building a nest and attracting rapidly growing customers on emerging cross-border e-commerce platforms. It is expected to expand the service chain, and the release of production capacity combined with the expansion of the service chain is expected to catalyze performance. In the short term, the company will significantly benefit from rental income from Ka Shing International Port this year. Considering that no formal contract has been signed for this bid project and profit forecasts are maintained, the company's net profit due to mother is estimated to be 30/3.4/4.1 billion yuan in 2024-26, respectively, and the P/E corresponding to the company's current stock price is 13.4/11.8/9.7 times, respectively.
Risk warning: The release of storage capacity falls short of expectations, and demand falls short of expectations.