Comments on hot events in the industry this week 1 Logistics: December 6, 2021, China Logistics Group Co., Ltd. (hereinafter referred to as “China Logistics Group”) was officially established. We believe that: first, China logistics group was established by China Railway Materials Company Limited(000927) China Chengtong is reorganized and integrated, and is a central enterprise under the jurisdiction of SASAC. Second, China’s logistics industry is facing new development opportunities. China’s logistics is committed to becoming a first-class comprehensive logistics enterprise. Third, we are fully optimistic about the long-term value investment opportunities of the comprehensive logistics track, Recommended S.F.Holding Co.Ltd(002352) (002352. SZ), Cts International Logistics Corporation Limited(603128) (603128. SH), Eastern Air Logistics Co.Ltd(601156) (601156. SH), Transfar Zhilian Co.Ltd(002010) (002010. SZ), Sinotrans Limited(601598) (601598. SH) investment opportunities. 2. Express delivery: Recently, the industrial and commercial change of Hangzhou Baishi Network Technology Co., Ltd., an affiliate of Baishi logistics, has occurred, and the new shareholder Jitu Express Co., Ltd. holds 100% of the shares. Jitu has officially completed its stake in Baishi. We believe that: first, Jitu started its business in Southeast Asia and has developed and expanded rapidly. Second, China’s express industry is facing a new pattern and the price is low The grid battle slows down and releases the inflection point signal. The third is to recommend Zhongtong Express (2057. HK), Yunda Holding Co.Ltd(002120) (002120. SZ), Yto Express Group Co.Ltd(600233) (600233. SH).
This week’s industry dynamic data tracking 1 In the air cargo market, the adjustment of the “passenger to cargo” policy superimposed the impact of Omicron strain, and the air cargo price hit a new record. In December 2021, the air cargo price from Shanghai to North America was $14.04/kg, a year-on-year increase of + 81.63%. 2. Air passenger transport market: the number of three major flights in European and American routes still ranks first. 3. Shipping market: in terms of bulk transportation, the price index of bulk transportation market rebounded and adjusted month on month, and the BDI index closed at 3272 points. In terms of oil transportation, the oil transportation price rebounded slightly month on month this week, and the BDTI index closed at 785 points. In terms of centralized transportation, the SCFI index closed at 4810.98 points, and the centralized transportation price showed an upward trend again in December. In terms of domestic trade consolidation, the price of domestic trade consolidation continued to rise slightly on a weekly basis, and the PDCI index closed at 1820 points. 4. Road network traffic: in November, due to the disturbance of epidemic situation in many places in China, the prevention and control policy was upgraded, the travel demand was restrained, and the same month on month ratio decreased.
The performance of the transportation industry in the capital market since the beginning of 2021, the Shanghai Composite Index and CSI 300 have increased by + 5.57% and – 3.00% respectively, and the transportation index has increased by + 1.21%; In terms of sub sectors of transportation, port + 2.94%, bus + 12.19%, air transportation + 10.12%, airport – 32.60%, expressway + 2.96%, shipping + 29.60%, railway transportation – 12.15% and logistics + 8.38%.
Core portfolio performance: the recommended core portfolio of Galaxy transportation is S.F.Holding Co.Ltd(002352) (002352. SZ), Cts International Logistics Corporation Limited(603128) (603128. SH), Transfar Zhilian Co.Ltd(002010) (002010. SZ). As of December 10, 2021, the core portfolio of Galaxy transportation in 2021 is + 42.44%, and the relative income is + 41.23%.
Risks: cross border logistics demand is less than expected, express price war, repeated covid-19 epidemic, changes in transportation policies and regulations, etc.
