Per AI Express, on December 28, 2023, China Merchants ** released a research report commenting on Jiacheng International (603535).
Based on high-quality and high-standard warehouse resources, the company builds nests to attract phoenixes, attracts fast-growing emerging cross-border e-commerce platform customers, and then is expected to expand the service chain, from "warehouse" to "guan" and "dry" business, and the expansion of the superimposed service chain is expected to catalyze performance.
The company is a comprehensive logistics service provider with the integration of the whole chain. The company is a service provider that provides customers with customized logistics solutions and integrated logistics of the whole chain. The company started by providing trunk transportation services for manufacturing enterprises, and its customers have included manufacturing enterprises such as Panasonic, e-commerce enterprises such as Alibaba, especially cross-border e-commerce enterprises. In 2017-22, the company's revenue grew at a compound annual growth rate of 43%, with an average annual compound growth rate of 76%。In terms of revenue structure, the proportion of income from integrated logistics business, first-chain distribution execution business, and other business revenue is .3% (in 2022);In terms of profit structure, the integrated logistics business is the main contributor to profits.
Building a nest attracts phoenixes, and cross-border e-commerce brings new opportunities. 1) The company has high-quality warehousing resources in superior locations, including Guangzhou Nansha Jiacheng International Port (over 500,000 square meters) and Tianyun Logistics Center (150,000 square meters) that have been put into operation. There are also companies in Hainan that plan warehousing and are expected to expand logistics services in the duty-free consumer market in the future. The company's warehousing is a large-scale high-standard warehouse, and the company is expected to have more than 2 million square meters of high-standard warehouses in the future. 2) The development of cross-border e-commerce brings new opportunities to the company. With the rapid growth of emerging cross-border B2C platforms, higher requirements are put forward for warehousing and logistics chains. Cross-border e-commerce logistics involves a full-link service of "dry, warehouse, customs and distribution", and "warehouse" and "customs" are the company's core competitiveness. At present, the company has strategic cooperation with world-renowned e-commerce platforms (four major APPs). In addition, the company also plans to further expand its air trunk transportation capacity through a joint venture with Huamao Logistics to expand the service chain.
The release of production capacity is expected to catalyze performance. Based on high-quality and high-standard warehouse resources, the company builds nests to attract phoenixes, attracts fast-growing emerging cross-border e-commerce platform customers, and then is expected to expand the service chain, from "warehouse" to "guan" and "dry" business, and the expansion of the superimposed service chain is expected to catalyze performance. In the short term, the company will significantly benefit from the rental income from Jiacheng International Port. We expect the company's net profit attributable to the parent company in 2023-25 to be 19/2.8/3.200 million yuan, the company's current stock price corresponding to P E is 214/14.7/12.9 times, covering the company for the first time, giving it a "highly recommended" investment rating.
Risk warning: the release of storage capacity is less than expected, and the demand is less than expected.
*: Huibo Investment Research).
Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Do so at your own risk.
Edited by Tsang Kin-fai).
National Business Daily.