Incident: Xingtong Co., Ltd. announced the 2024 employee stock ownership plan (draft). The plan size does not exceed 4.2 million shares, accounting for 1.5% of the company's current share capital. The transfer price of the employee stock ownership plan (including reserved shares) is 7.38 yuan/share. The first unlocking period assessment target: based on 2023 revenue, the 2024 revenue growth rate is not less than 25%; or based on 2023 net profit, the 2024 net profit growth rate is not less than 25%; or based on 2023 freight volume, the 2024 freight volume growth rate is not less than 25%. The second unlocking period assessment target: based on 2023 revenue, the 2025 revenue growth rate is not less than 35% (target value: 50%); or based on 2023 net profit, the 2025 net profit growth rate is not less than 35% (target value: 50%); or based on 2023 freight volume, the 2025 freight volume growth rate is not less than 35% (target value: 50%). We believe that the implementation of the employee plan will motivate core employees and at the same time demonstrate the company's performance goals for the next two years.
Strengthen core competitiveness, and the company's performance continues to grow. In 2023, the company added 7 new domestic trade vessels, with a capacity of 0.048 million DWT, further consolidating its leading position in the industry. As of December 31, 2023, the company has operated 27 domestic trade vessels with a capacity of 0.2878 million DWT, including a total of 20 coastal inter-provincial chemical vessels (excluding the provincial ship “Xingtong 7”), with a capacity of 0.2122 million dwt, accounting for 14.22% of the market capacity. The market share has steadily increased, and the core competitiveness has continued to be strengthened. In 2023, the company achieved revenue of 1.24 billion yuan, up 57.7% year on year, and achieved net profit of 0.25 billion yuan, up 22.3% year on year; in the first quarter of 2024, the company achieved revenue of 0.39 billion yuan, up 13.6% year on year, and realized net profit to mother 0.08 billion yuan, up 0.6% year on year.
Expand clean energy and international business, and strive to transform and upgrade to a comprehensive service provider in the chemical supply chain. 2023 LPG ship “Xingtong 359” (5200m? ) It was successfully put into operation. The company's layout in the LPG transportation field was continuously improved, and the market position in the domestic LPG water transport industry was steadily improving. The company actively participated in international chemical transportation and broadened business development space. As of December 31, 2023, the company operated 6 foreign trade ships with a capacity of 0.0972 million DWT to serve customers around the world. The routes crossed the Mediterranean from East Asia and the Middle East to the Atlantic Ocean.
Investment suggestions: Considering the gradual development of the company's refined oil products and LPG transportation business, the advantages in the domestic coastal and interprovincial bulk liquid dangerous goods water transportation sector are becoming more and more prominent. At the same time, the company will enjoy higher profits by setting up international transportation services through the construction of new chemical tankers. It is recommended to continue to pay attention.
Risk warning: macroeconomic fluctuation risk, capacity regulation policy risk, ship safety operation risk, environmental protection risk, fuel price fluctuation risk, risk of high customer concentration, etc.