The company is the main hub for the transportation of coal from the north to the south, the main industry of coal transportation has hit bottom and rebounded, and the valuation of the issue price is reasonable. For the first time, the company has been given a "highly recommended-A" rating, with a target price of 3.40 yuan, corresponding to 20X PE in 17 years.
Operators of bulk bulk terminals have returned to A shares for several years. Founded in 2008.3, Qin Port is the world's largest dry bulk terminal operator, mainly operating in Qinhuangdao Port, Caofeidian Port area and Huanghua Port area. The controlling shareholder is Hebei Port Group, and the actual control is Hebei State-owned assets Supervision and Administration Commission. The company began to prepare for listing in 2010, and then it went public on the Hong Kong Stock Exchange in 2013.12 for a number of reasons. It plans to list on the Shanghai Stock Exchange in 2017.8 and return to A shares.
Coal is the core business, and the performance has hit bottom and rebounded. Qinhuangdao Port and Caofeidian Port area are connected with the main coal producing areas of "Sanxi" through the relocation of Daqin Line and its branch line to Cao Line and Zhangtang Railway, which are the main sewers for coal transportation in this area. The company has a launching capacity of 195 million tons of coal in Qinhuangdao Port and invests in the construction of the second phase of Caofeidian Coal Wharf (50 million tons with a 51% stake). In the first half of 16 years, mainly after the opening of the Zhunchi railway, the diversion of Shuohuang to Daqin was enhanced, and the company's coal throughput continued to decline; since the second half of 16 years, with the capacity saturation of Huanghua Port and the recovery of the coal market, the company's coal throughput has rebounded significantly.
Expand iron ore and other goods to reduce the dependence of coal business. In order to reduce the dependence on coal business, the company has gradually expanded its metal ore, grocery, liquid bulk cargo and container business, especially the construction of 65.5 million tons (35%) and 30 million tons of iron ore terminals in Caofeidian and Huanghua ports. However, due to the low utilization rate of capacity, the container and oil products business is still in a state of loss, and the subsequent profit is expected to improve gradually.
Fund-raising projects: in this issue, the company intends to issue no more than 558 million shares, accounting for 10% of the total share capital of the company after the issue, and no more than 1.241 billion yuan will be raised for projects such as the purchase of local equipment in Qinhuangdao.
Investment strategy: the company is the main hub of transporting coal from the north to the south, the status of coal seaport is still stable, and gradually expand ore, oil products and other business, the main performance hit bottom and rebounded. We predict that the company's EPS for 17-18-19 will be 0.17 PE 0.19 PE, with a corresponding issue price of 2.34 yuan 13.9 Universe 12.5 PE and a rating of "highly recommended-A" for the first time, with a target price of 3.40 yuan.
Risk tips: declining demand for coal and diversion of surrounding ports