Events:

The company announced that after friendly negotiation with Shaanxi Coal Group, the company and its subsidiary Shaanxi Coal Trading Center Co., Ltd. jointly funded the establishment of Chongqing Port West Coal Commodity Market Co., Ltd. And West Coal Chongqing Port Logistics Co., Ltd.

Main points of investment:

Further enhance the function and market competitiveness of the company's entire logistics platform.

Shaanxi Coal Group is a super-large energy and chemical enterprise group affiliated to Shaanxi Province, and it is the main body of coal development and construction and commercial coal supply in Shaanxi Province. Through this cooperation, the company can further strengthen the information exchange, business linkage and mutual assistance in management with Shaanxi Coal Group, realize the effective docking of the superior resources of both sides, and help the company to further enhance the function of the whole logistics platform and market competitiveness. promote the company's long-term development.

Benefiting from the national strategy, the status of high quality is highlighted.

With the continuous promotion and implementation of national strategies such as "Belt and Road Initiative", the Yangtze River Economic Belt and the third cooperation project between the Chinese and New Zealand governments, Chongqing will give better play to the important strategic supporting role of the opening up of the western region, and the function of the golden waterway of the Yangtze River will be further enhanced. The logistics freight volume of the Yangtze River is expected to continue to grow, and the port industry as a whole will continue to maintain a steady development. In the strategic construction of Chongqing's "Belt and Road Initiative" and the Yangtze River Economic Belt, the high-quality status of Chongqing Port and Kowloon is highlighted, and we expect that the positive effects of the future beneficiary national strategy will gradually emerge.

Investment suggestion

The production and operation of the company is gradually changing from the traditional single port loading and unloading mode to the whole logistics mode, the service value chain has been greatly extended, and its control over the port logistics market has been significantly strengthened. with the support of the national strategy, the company's performance is expected to achieve sustained and steady growth. It is estimated that the company's EPS from 2016 to 2018 will be 0.14,0.17 and 0.23 yuan respectively, maintaining a "recommended" rating.