Core viewpoints
1. The largest port in southwest China, with strong throughput growth
Beibu Gulf Port is the largest port operator in southwest China. It is the most convenient gateway for Chinese mainland economic hinterland to contact ASEAN countries in Indochina Peninsula. It has unique geographical advantages. The company has developed rapidly in recent years, with a compound annual growth rate of 17.68% in cargo throughput from 2016 to 2020, ranking in the forefront of coastal ports in the country, and container throughput at a compound annual growth rate of 31.60%, ranking first among coastal ports in the country.
two。 The integration of Northern Imperial Defense has been continuously strengthened, and the synergistic effect has been highlighted.
The integration of industrial development in Beihai, Qinzhou and Fangchenggang has been continuously strengthened, and the synergy and scale effects of the three ports have been increasing, promoting the further growth of cargo and container throughput and the ability to resist risks. In 2020, the cargo throughput of Beibu Gulf Port grew at an annual rate of 14.84% over the same period last year, and the container throughput grew at an annual rate of 29.51% over the same period last year.
3. The economic and trade environment inside and outside the region has been improved, and rapid growth is expected.
The southwest region is one of the most potential regions in China, undertaking the industrial transfer in the east, and large-scale key projects have been launched one after another. From 2014 to 2019, the compound annual GDP growth rate of the five provinces of Yunnan, Guizhou, Sichuan, Chongqing and Guangxi reached 10.29%. The successful signing of the RCEP agreement will further enhance the level of cooperation between China and ASEAN countries. The container throughput of Beibu Gulf Port exceeded 5 million TEUs in 2020 and is expected to reach 10 million TEUs in 2025. The rapid growth is expected to continue.
Risk Tips:
1. With the economic downturn in the southwest, the landing of key projects has been slow, resulting in a decline in the growth rate of port throughput.
2. The RCEP agreement is not as strong as expected, regional protectionism is on the rise, and the regional trade and business environment in Southeast Asia has deteriorated.
3. As competition among surrounding ports intensifies, other port operators increase terminal investment, reduce port charges and divert part of the market share.