Recently, the reporter of Securities Daily learned in various interviews that due to the repeated epidemic in China and the upgrading of prevention and control measures in Shanghai, the logistics express business in Shanghai is basically suspended, which does have a certain impact on the logistics and inventory turnover of listed companies.
But, Hu Jinghui, chief economist of Jinghui think tank, said in an interview with the Securities Daily: “enterprises that rely heavily on China’s international trade supply chain and are more related to logistics and service industries will be more affected by the epidemic, but the market demand is only delayed and has not decreased. There will certainly be a rebound after the epidemic. As for the strength of the rebound, it is also related to the adjustment of monetary policy and epidemic prevention and control measures.”
Shanghai logistics express business basically stopped
The reporter of Securities Daily learned from the two major logistics enterprises of deppon logistics and Yuantong express that the daily express business in Shanghai is basically suspended due to the comprehensive closed management.
Yuantong Express insiders told reporters that the daily express delivery in Shanghai has basically stopped, and now the company is fully cooperating with the distribution of epidemic prevention materials.
Deppon express insiders also said that Shanghai Express was basically at a standstill. “From March 28 to April 5, all transfer yards were closed, with only 40 passes. Vehicles and personnel holding government passes can continue to work for emergency needs such as emergency customer delivery and assisting the government in transporting epidemic prevention materials. The business end is almost in a state of stagnation.”
\u3000\u3000 “There are normal operations in the Pudong transfer center, with a total of more than 100 employees on duty, but the arrival goods are in a state of no entry and no exit, the inventory is overstocked and overloaded, and the Pudong arrival has begun to limit the collection on the 31st. Jinshan transfer center is in a fully sealed state, with more than 10 people on duty. Through internal adjustment, some talliers and drivers are transferred to Xinqiao site for operation. Xinqiao undertakes 8 branch line destinations in Jinshan, and the remaining 30 destinations are in a sealed state , the goods are overstocked in the outfield, and 51 vehicles are pressed by the branch line. Puxi Regional Park is completely closed and cannot be operated. All management levels are on duty. Through new lines or route adjustment, vehicles on the way are pulled to the nearby outfield around Shanghai for unloading. ” Referring to the impact of daily express business, deppon securities insiders told the reporter of Securities Daily.
Puxi began to enter the closed management mode at 3 a.m. on April 1. At the same time, many logistics enterprises, including deppon logistics and Yuantong express, provide strong support for the distribution of epidemic prevention materials and living materials. According to the arrangement, deppon express is responsible for the distribution of the above materials in Xujing Town, and has dispatched capable personnel and sufficient vehicles to complete the distribution work with high efficiency and quality.
Since March 31, Yuantong’s special bus has continuously transported more than one million covid-19 virus antigen detection reagents produced by the enterprise from Hangzhou to Shanghai every day. So far, about 6 million covid-19 virus antigen detection reagents have been transported. On April 5, Yuantong carried 100 tons of living materials donated by Mangshi government department of Dehong Prefecture, Yunnan Province to Shanghai Qingpu District, Fudan University and other places for free. In the early morning of April 6, Yuantong carried nearly 200 tons of vegetables from Shanxi Yuncheng to Shanghai Minhang, which were temporarily ordered by Yuantong drivers in many parts of the country and delivered without getting off the bus for 61 hours.
listed companies respond to Logistics Impact
Bichamp Cutting Technology(Hunan) Co.Ltd(002843) 2021 achieved export revenue of 114 million yuan, with a year-on-year increase of 90.36%, which contributed to the main increment of the company’s performance last year. However, the epidemic in Shanghai has brought some small troubles to the company’s operation Bichamp Cutting Technology(Hunan) Co.Ltd(002843) Director Secretary Xie Yingbo told the reporter of Securities Daily: “the export situation of the company is very good. The growth is greater than that of China and continues to grow at a high level. The epidemic situation in China does have an impact on the logistics of the company. Before, the goods exported by the company basically went to Shanghai, but now they can only be exported to Ningbo. After the epidemic situation, they will go back to Shanghai.”
Hunan Fangsheng Pharmaceutical Co.Ltd(603998) Director Secretary He Shi also said in an interview with the reporter of Securities Daily: “affected by the epidemic, the logistics of the company can not enter. Now the goods of the company in Shanghai can not be delivered, and the materials sent to Shanghai can not enter. We communicate with customers and suppliers every day. Fortunately, our company has always required strategic reserve and dynamic safety inventory management of core materials, which will not have much impact in the short term.”
In addition to the above listed companies, many listed companies also said on the investor interaction platform that the recent epidemic has indeed had an impact on logistics.
Shandong Liancheng Precision Manufacturing Co.Ltd(002921) said that the company’s current production and operation are normal, but due to the epidemic, some customer orders and logistics transportation in some regions have been affected to some extent.
Shanghai Ailu Package Co.Ltd(301062) said that the company’s orders are in good condition and the production is orderly and normal. In the short term, due to the limitation of epidemic prevention and control, the transportation of goods may be partially affected for a period of time. The company will continue to do its best to coordinate logistics resources to ensure the timely delivery of customer orders.
Jiangsu Eastern Shenghong Co.Ltd(000301) also said that at present, the production and operation of the company’s polyester filament business is normal, but the epidemic control has an impact on the logistics and transportation efficiency in some regions.
What kind of impact will the blocked sealing and control logistics of the epidemic have on listed companies? Cheng Yu, a professional investor, pointed out in an interview with the reporter of Securities Daily: “logistics obstruction will cause some confusion in the production cycle of the enterprise. The inventory turnover rate largely depends on the operation efficiency of the enterprise’s supply chain, while logistics supports the operation of the supply chain. Therefore, logistics obstruction will reduce the enterprise turnover rate, increase the operation cost, and lead to the decline of the enterprise’s gross profit.”
However, Hu Jinghui said: “the first quarter has passed. The expected evaluation of Listed Companies in the first quarter also takes into account the impact of the epidemic and whether the epidemic prevention and control policies will be adjusted. These factors have a key impact on the economic trend and enterprise operation in the second quarter.”
