On March 26, Jiangsu Lianyungang Port Co.Ltd(601008) released the 2021 annual report, which said that benefiting from the increase of throughput and the growth of the business volume of Jiangsu Lianyungang Port Co.Ltd(601008) China South Korea ferry, the holding subsidiary, the company achieved a revenue of 2.033 billion yuan last year, a year-on-year increase of 25.34%; The attributable net profit was 109 million yuan, a year-on-year increase of 194.23%.
The reporter found that as of March 26, 9 companies in the A-share port sector had disclosed their annual reports or express reports, and the net profits of 7 companies showed an increase, of which, Shanghai International Port (Group) Co.Ltd(600018) , Xiamen Port Development Co.Ltd(000905) net profits increased by more than 70%, and Jiangsu Lianyungang Port Co.Ltd(601008) temporarily ranked the “top” with a growth rate of 194%.
port company’s performance generally rose
According to the financial report data, Jiangsu Lianyungang Port Co.Ltd(601008) 2021, which has the largest net profit growth, opened a new “Hefei Jiangsu Lianyungang Port Co.Ltd(601008) ” sea rail intermodal transport channel for vehicle export, and opened three additional ro ro liner routes from Jiangsu Lianyungang Port Co.Ltd(601008) to Pakistan and Mexico. During the reporting period, the company completed a total throughput of 628331 million tons, with a year-on-year increase of 1.0155 million tons, and the cargo heavy container volume of ” Jiangsu Lianyungang Port Co.Ltd(601008) – Incheon” and ” Jiangsu Lianyungang Port Co.Ltd(601008) – pingze” routes increased significantly, with a year-on-year increase of 33.96%.
In view of the growth of the company’s shipping business, Bai Wenxi, chief economist of IPG China, said in an interview with Securities Daily: “from the perspective of geographical environment, the sharp rise of Jiangsu Lianyungang Port Co.Ltd(601008) performance is mainly due to the sharp rise in port service demand caused by the adjustment of industrial structure and the change of market demand in the hinterland it serves. The company’s location advantages and superior natural conditions provide the best support for this rapidly rising demand for port services.”
“In 2022, the company will strive to open Jiangsu Lianyungang Port Co.Ltd(601008) – Incheon container route and improve the container market share of China South Korea route.” The company said.
Referring to the proportion of container market, “Shanghai Port”, as the world’s first port in container throughput, reached 47.03 million TEUs last year, with a year-on-year growth rate of 8.1%; Benefiting from the steady improvement of home port business contribution, the cargo throughput of Shanghai International Port (Group) Co.Ltd(600018) 2021 reached 539 million tons, with a year-on-year increase of 5.7%; During the reporting period, the revenue reached 34.38 billion yuan, a year-on-year increase of 31.6%; The net profit was 14.5 billion yuan, a year-on-year increase of 74.5%.
The reporter noted that Shanghai International Port (Group) Co.Ltd(600018) after taking shares in Nanjing Port Co.Ltd(002040) and cooperating with Taicang port to develop ICT business, it plans to further contract Jiangsu Lianyungang Port Co.Ltd(601008) 15 billion yuan, and set an increase to become the “second leader”, and its “Yangtze River Delta integration” strategy will go further.
In addition, Xiamen Port benefited from the substantial growth of bulk cargo throughput last year, and Xiamen Port Development Co.Ltd(000905) achieved a revenue of 23.58 billion yuan, a year-on-year increase of 50.13%; The net profit was 240 million yuan, a year-on-year increase of 78.62%. Xiamen has been approved to build a national port type national logistics hub, forming a 100 billion shipping logistics industry cluster, which also brings important development opportunities to the company.
According to the disclosed financial report, in addition to the high growth rate of Jiangsu Lianyungang Port Co.Ltd(601008) , Shanghai International Port (Group) Co.Ltd(600018) , Xiamen Port Development Co.Ltd(000905) performance, Tianjin Port Co.Ltd(600717) , Shenzhen Yan Tian Port Holdings Co.Ltd(000088) , Ningbo Zhoushan Port Company Limited(601018) , Nanjing Port Co.Ltd(002040) also achieved different degrees of performance improvement due to the increase of throughput.
With regard to the general rise in the performance of A-share port companies last year, an Guangyong, an expert on the credit management committee of the all China Association of mergers and acquisitions, told the Securities Daily: “although the epidemic has limited people’s flow, it has increased the flow of logistics. As the economies of various countries begin to recover, various trade demands have been activated accordingly. Therefore, the phenomenon of supply exceeding demand of shipping resources has brought about the profit growth of ports and shipping companies.”
shipping volume and price increase
According to the data released by the Ministry of transport, the container throughput of ports across the country was 280 million TEUs in 2021, a year-on-year increase of 7%; The cargo throughput was 15.54 billion tons, a year-on-year increase of 47.5%. The growth rate has returned to the pre epidemic level.
The reporter learned that last year, due to the epidemic, overseas countries replenished goods and export orders soared. However, due to a series of problems such as the congestion of the Suez Canal, the reduction of routes, the tight turnover of containers, unilateral trade protection and so on, the shipping freight rate rose higher and higher.
In this regard, Bai Wenxi told the Securities Daily: “last year, China first recovered from the epidemic and expanded the global trade demand for China. The shortage of China’s energy and bulk raw materials also prompted China to increase imports. Driven by the demand for transportation capacity, the price and scale of port services are on the rise.”
Thanks to the steady growth of investment and consumption, the throughput of coal, containers, grain, timber, cement and other goods in Chinese ports increased rapidly. Among them, the rapid growth of power coal demand has formed a strong pull on the demand for coal transportation; The rapid growth of foreign trade import and export has also formed an unexpected pull on the demand for container transportation.
According to the analysis of Chen Jinhai, a Tianfeng Securities Co.Ltd(601162) researcher: “With the recent sharp rise in oil prices, coal consumption and transportation demand is expected to increase as an alternative energy. China’s main coal producing areas are located in Shanxi, Shaanxi and Western Inner Mongolia. They arrive at the port through railway transportation such as Daqin line, Shuohuang line and Zhangtang line, and then arrive at coastal consumer areas by sea. Therefore, Daqin Railway Co.Ltd(601006) , Qinhuangdao port, Tangshan Port Group Co.Ltd(601000) , Rizhao Port Co.Ltd(600017) , Ningbo Marine Company Limited(600798) and other companies are expected to benefit from the growth of coal transportation volume.”
Talking about the relationship between shipping supply and demand and the trend of freight prices this year, Bai Wenxi said: “from the current shipping environment and port policies, the development trend of port companies in 2022 is stable and rising. International Geographical conflicts and their changes and remodeling to the world commodity and trade structure and supply chain pattern will have a profound impact on the changes of the world shipping pattern, and will naturally bring greater opportunities and challenges to China’s port service system.”
