Core views:
On May 14, Jiacheng International issued the “Notice of Guangzhou Jiacheng International Logistics Co., Ltd. on winning the bid for important projects”. The company won the bid for the SHEIN (SHEIN) quality inspection outsourcing project contract for a period of 1 year from the date of signing. The annual revenue generated by the contract is expected to exceed 10% of the company's audited revenue in 2023.
It has continuously won bids for logistics bidding projects on cross-border e-commerce platforms, and its growth potential has been continuously verified. According to Jiacheng International's announcement, the company won the bid for the cross-border e-commerce platform logistics project on March 5 and May 9, 24, respectively. This quality inspection outsourcing project is the fourth time since '24 that the company has won the bid for Xiyin's logistics-related project. The scope of business has expanded from warehousing logistics to quality inspection. It is expected that the above three contracts will bring the company a total revenue contribution of more than 500 million yuan/year, and the company's operational capacity and growth potential as an integrated integrated logistics service provider will continue to be verified.
Leading cross-border e-commerce warehousing in South China, embraces the opportunities of the cross-border e-commerce boom and looks forward to increased monetization capacity.
According to the Jiacheng International announcement, the total area of the company's core assets, Tianyun International Logistics Center and Jiacheng International Port is close to 700,000 square meters. The 1Q24 company actively adjusted its business structure, leveraged the cross-border e-commerce export wave to gain strength and enjoy demand release dividends. Net profit to mother reached 65 million yuan/yoy +52.1%, and the inflection point in performance has already been shown. In addition, the company continues to explore upstream and downstream opportunities in the value-added logistics service chain, and plans to develop multi-scenario business segments such as air main line transportation and overseas warehouses. Backed by warehousing traffic, the company's potential to increase its monetization capacity can be expected.
Profit forecasting and investment advice. The company's net profit for 24-26 is estimated to be 281 million yuan, 3.31 million yuan, and 388 million yuan, respectively. Referring to historical centers and comparable companies, I am optimistic that the operating environment in the warehousing process is more stable and that there is room for improvement in subsequent traffic monetization. The corresponding reasonable value is 21.6 yuan/share for 24 years. For the first time, coverage is given a “gain” rating.
Risk warning: international trade fluctuations; foreign policy fluctuations; warehouse operation falls short of expectations.