Chemicals: the rise of Xingtong and shenghang
Xingtong shares and Nanjing Shenghang Shipping Co.Ltd(001205) rise in the domestic chemical ship transportation market. In 2017-20, the performance of Xingtong shares and Nanjing Shenghang Shipping Co.Ltd(001205) increased rapidly, corresponding to the rapid expansion of transportation capacity. Behind the high growth is the rapid and substantial increase in the market share of the two companies. The increased concentration of refining and chemical industry and the distribution of new transport capacity are conducive to the head company and the head company’s active acquisition of second-hand ships, which all promote the improvement of the concentration of domestic chemical shipping industry. In addition, large-scale refining and chemical projects have been put into operation one after another, which not only promotes the growth of transportation demand, but also promotes the high growth of head companies. Looking forward to the future, Xingtong shares and Nanjing Shenghang Shipping Co.Ltd(001205) IPO raised investment projects are actively expanding the scale of transportation capacity, which is expected to drive the continuous high growth of transportation capacity of the two companies.
Liquefied gas: opportunities from high growth
The high growth of domestic LPG ship transportation demand gives new entrants development opportunities. China’s LPG consumption demand is growing rapidly and its dependence on imports is high. The rapid development of large-scale refining and chemical industry makes up for the demand gap and drives the high growth of domestic trade and shipping demand. The head company actively expands its transportation capacity and improves its market share in the rapidly developing market. More new transport capacity indicators also bring development opportunities to some small and medium-sized enterprises. Xingtong Co., Ltd. and Nanjing Shenghang Shipping Co.Ltd(001205) are leading in the industry in the rating of transportation capacity evaluation, and are expected to obtain more new transportation capacity indicators in the future.
The domestic LNG ship transportation market is small, and the future development space is limited.
Oil products: led by state-owned enterprises
The growth of domestic oil shipping demand is slowing down, the leading state-owned enterprises dominate the market, and small and medium-sized enterprises have certain development opportunities.
Although the development of large-scale refining and chemical industry promotes the growth of oil transportation demand, the growth of China’s refined oil consumption has slowed down, and the growth of oil transportation demand will also slow down in the future. The domestic oil shipping market is dominated by COSCO Group and China Merchants Group, and the shares of other companies are low. However, the concentration of the market is declining, and a large number of new refined oil transportation capacity indicators are obtained by small and medium-sized enterprises, which means that small and medium-sized enterprises also have development opportunities.
Investment suggestion: recommend shenghang and pay attention to Xingtong
Recommend Nanjing Shenghang Shipping Co.Ltd(001205) and pay attention to Xingtong shares to be listed soon. The domestic liquid cargo dangerous goods shipping market has a large capacity and is still growing rapidly. Some private enterprises have low market share and fast development speed. After listing and financing, they are expected to continue to expand their transportation capacity rapidly. Recommend the listed Nanjing Shenghang Shipping Co.Ltd(001205) , with a target price of 48.86 yuan and a buy rating. Pay attention to the upcoming listing of Xingtong shares, and the IPO raised investment project is expected to promote high growth in the future.
Risk tip: the entry threshold of coastal dangerous chemicals shipping has decreased, the risk of product output fluctuation in the chemical industry, safety accidents in the transportation of dangerous chemicals, and the fuel price has risen sharply. The calculation is subjective and for reference only.
