Events:
Zhuhai Port (000507) released its quarterly report for 2010. the company's Q1 realized operating income of 1.16 billion yuan in 2021, an increase of 96.6% over the same period last year; the company realized a net profit of 77 million yuan belonging to shareholders of listed companies, an increase of 565.8% over the same period last year; earnings per share was 0.08 yuan; in addition, the company's 2020 report disclosed that it planned to distribute a cash dividend of 0.6 yuan (including tax) for every 10 shares to all shareholders.
Comment
The actual control of the company is Zhuhai SASAC, and Zhuhai Port Group, the company's controlling shareholder, is a state-owned enterprise wholly owned by Zhuhai SASAC. The core business of the company is the operation of Zhuhai port and the logistics trade supply chain in the inland hinterland. In 2018, we put forward four strategic directions, supported by 3-4 business sectors, and gradually formed a synergy effect. The company expects to enhance the ability of independent innovation and sustainable development while expanding the scale of the main business.
1. Port, shipping and logistics plate
Relying on the Zhuhai Gaolan mother port and the four holding inland river terminals located in the Xijiang River Basin and the Yangtze River Basin, we develop traditional freight, warehousing, bonded VMI, trade and logistics, as well as port and shipping supporting services such as shipping forwarders, freight forwarders, tally, tugboats and customs declarations. the company is positioned as the most competitive logistics park management service provider in the region. The acquisition of Xinghua Port (1990.HK) in Changshu, Jiangsu Province during the 2020 epidemic will lead to deep cooperation between shipping and logistics companies in the Pearl River Delta and the Yangtze River Delta. According to our classification, this sector accounted for 67% of revenue in 2020.
2. New energy plate
It mainly includes electric power, new energy and pipeline gas. Among them, pipeline gas is operated in Zhuhai and the western region of Zhuhai, with steady growth. Electric power new energy includes photovoltaic, wind power, thermal power, affordable photovoltaic power stations, energy storage and hydrogen energy utilization and development and other fields, this sector mainly through epitaxial mergers and acquisitions to expand upstream and downstream enterprises. After the acquisition of 100% equity in Anhui Tianyang and 49% in Suqian Xiehe. According to our classification, this sector accounted for 15% of revenue in 2020.
3. Advanced manufacturing plate
Mainly consumer goods manufacturing. Zhuhai Coca-Cola settled in Zhuhai in 1985. 2020 contributed more than 20 million of profits. Plant reconstruction and expansion will be launched in September 2020, and it is planned to expand from the current 10 production lines to more than 15, and the future production capacity will be doubled. In April 2021, the company became the largest shareholder of Xiuqiang shares (300160), with a shareholding ratio of 25%, thus cutting into the field of glass deep processing consumption. It is expected that more future gains will be reflected in other subjects.
Investment rating
The compound growth rate of Zhuhai Port's homed net profit in the past three years was 23.2%. During the 2020 epidemic, the growth rate also reached 18.4%. At the same time, the company's dividend ratio is rising year by year. From 2016 to 2020, the dividends per 10 shares for 5 consecutive years were 0.2,0.36,0.42,0.50 and 0.60 yuan (including tax), respectively. The compound growth rate of dividend distribution in the past three years is 18.6%.
We believe that the company's performance and dividends have grown steadily, and the two-wheel drive strategy has been effective. Q1 quarter results highlight the growth in freight rates and freight demand rarely seen in history, which brings considerable flexibility to the company's performance. It is estimated that the return net profit (RMB 100 million) of the company in the next three years is 3.6,3.8 and 4.2 respectively, the PE is 0.38,0.41 and 0.45 respectively, and the corresponding EPS is 15.7,14.7 and 13.3 times respectively. Give "overweight" rating.
Risk hint
The duration of the high level of port freight volume is too short, and the progress of advanced manufacturing integration is not as expected.
