\u3000\u3 Shengda Resources Co.Ltd(000603) 871 Jiayou International Logistics Co.Ltd(603871) )
Events
Jiayou International Logistics Co.Ltd(603871) ( Jiayou International Logistics Co.Ltd(603871) ) recently announced that the construction of Kasumbalesa sakaniya road in the Democratic Republic of the Congo has been completed, the whole line has been opened to traffic, and it has officially entered the charging trial operation stage. The additional issuance of the company has also been completed. The transfer registration of some shares transferred by the shareholders of the company has been completed, and Zijin Mining Group Company Limited(601899) indirectly holds about 20%.
Comments
The company’s business spans Asia and Africa, and its transportation goods are mainly bulk commodities. Powerful shareholders are introduced, and there may be new business layout in the future.
1. Coal trade supply chain
The company’s main business is to import coal from Mongolia and distribute it to Chinese manufacturers. In 2020, China imported 27.21 million tons of coal from Mongolia, mainly through four ports. Among them, Ganqi Maodu port mainly imports main coking coal, accounting for 70% of Mongolia’s coal. The company accounts for 50% of the storage area of Ganqi Maodu port and 20% of the coal trade supply chain of Ganqi Maodu port. From 2020 to 2021, the import efficiency decreased due to the epidemic prevention and control at border ports. It is expected that with the mitigation of the epidemic in 22 years, the import volume is expected to increase significantly year-on-year, so as to improve the company’s performance.
2. Copper trade supply chain
According to the needs of customers, copper concentrates are purchased from Central Asia, Africa and Mongolia. After cross-border customs clearance, they are transported to the place designated by customers by multimodal transport. Also due to the epidemic, the transportation volume decreased year-on-year. The traffic volume is expected to increase with the slowdown of the epidemic and the opening of roads.
3. Overseas highway operation
The “150 km road from Kasumbalesa to sakania of National Highway 1 of the Democratic Republic of the Congo” prepared by the company has been opened to traffic. This section adopts two-way lane, with subgrade width of 11m, middle lane of 9m and design speed of 80km / h. The ancillary works of the road are expected to be completed in July 2022. This business is expected to contribute more than 150 million net profit to the company every year. At present, it is still in the trial operation stage of toll collection, and it will take some time to cultivate highway traffic flow.
Investment rating
First coverage, “overweight” rating. It is estimated that the EPS of the company in the next three years will be 1.08, 1.59 and 2.22 respectively, and the corresponding PE will be 16.6, 11.3 and 8 respectively.
Risk tips
The demand for bulk commodities has decreased, and the policy of 25-year special renewal of highway toll rights has deteriorated.
