\u3000\u3 Shengda Resources Co.Ltd(000603) 535 Guangzhou Jiacheng International Logistics Co.Ltd(603535) )
Matters:
Announcement of the company: Guangzhou Jiacheng International Logistics Co.Ltd(603535) announcement and Industrial And Commercial Bank Of China Limited(601398) signed the strategic cooperation agreement. The two sides will fully establish cooperative relations in the fields of financial business and investment banking and form a long-term cooperative partnership. In terms of financial business, on the premise of complying with relevant national industrial policies, ICBC will provide the company with comprehensive financial service support with a total amount of 3 billion yuan or equivalent foreign currency. In terms of investment banking business, ICBC will give full play to its experience in project financing for the company’s major financing business and various asset acquisitions, mergers and reorganization, provide the company with investment bank innovative products such as ABN, REITs, REITs, M & a funds and M & A loans, and assist the company in completing the remote expansion of logistics network and the integration of upstream and downstream businesses of the industry Guangzhou Jiacheng International Logistics Co.Ltd(603535) at present, the high-level smart Logistics Park (Guangzhou + Hainan) is under operation, construction and planning, with a total construction area of about 2.35 million square meters. It is planned to discuss the issuance of public REITs through its international Hainan multi-functional digital logistics center project. At present, the project has applied to Hainan Development and Reform Commission for inclusion in the REITs pilot project library.
Guoxin transportation viewpoint: combined with the opinions on building a national unified market issued by the State Council on April 10, logistics lies in “based on domestic demand and smooth circulation. Create and lead demand with high-quality supply to make all links of production, distribution, circulation and consumption more smooth”, and the means is to “build a modern circulation network, promote the construction of multi-level integrated comprehensive transportation hub, and promote the cross regional integrated development of transportation facilities.” Our interpretation of the industry and Guangzhou Jiacheng International Logistics Co.Ltd(603535) is as follows:
1. The essence of the opinion is to improve the efficiency of commodity circulation based on a game of chess in China. Just look at the fields of sea (shipping port), land (highway and railway logistics) and air (Airport). After years of development, China has a certain scale and network scale, and has begun to take effect of internationalization. The current pain point lies in the node of circulation, that is, the logistics hub adjacent to the production and marketing and core transit areas, that is, the comprehensive logistics park, Moreover, there are few indicators of logistics, especially storage land every year.
2. Combined with the logic that logistics real estate (the core is storage) is one of the core underlying assets of REITs, the yield is stable and the core region benefits from the long-term rise in prices, the targets such as Jiabao and Nanshan have begun to perform. We believe that the core logistics assets held in the transportation sector will have growth and low valuation in the future, and the targets may usher in a new outlet. As a toolbox option, REITs has a high probability of becoming bigger and stronger, Guangzhou Jiacheng International Logistics Co.Ltd(603535) plans to test the water. The above businesses will further expand the storage coverage area and complete the upstream and downstream integration.
3. Guangzhou Jiacheng International Logistics Co.Ltd(603535) at present, the high-standard intelligent logistics park under operation, construction and planning has a total construction area of about 2.35 million square meters. Guangzhou and Hainan have high-quality and scarce locations. The company plans to issue public REITs through Guangzhou Jiacheng International Logistics Co.Ltd(603535) Hainan multi-functional digital intelligence logistics center project. The project has applied to Hainan development and Reform Commission for inclusion in the REITs pilot project library. In the future, the company will lay out three-dimensional intelligent logistics parks of sea, land and air in important transportation hub cities in China and even in the world, establish a national network, improve logistics links, and better provide customers with full link integrated logistics services.
4. The strategic cooperation agreement with ICBC’s 3 billion financial support will further strengthen the company’s financing ability. If the superimposed REITs projects can be implemented successively, it is expected to have a positive impact on the company’s remote expansion and industrial upstream and downstream integration.
Profit forecast and investment suggestion: the company’s Guangzhou Shanghai Pudong Development Bank Co.Ltd(600000) square meter international port project will be fully put into operation in the second quarter of 2022, and the Haikou warehouse located in tax-free and other comprehensive logistics will be delivered successively in 2023. Considering that compared with the previous report, the production progress of the company’s production capacity is slightly slower than expected, the profit forecast for 20222023 is lowered to 322 million and 414 million respectively from 389 million and 479 million. The profit forecast for 2024 is introduced, and the net profit attributable to the parent company in 2024 is expected to be 552 million. At present, the market value corresponds to only 15.6 times of 22-year profit; Referring to other logistics and logistics real estate targets of a shares, the company’s market value of 5 billion corresponds to the area of 2.35 million square meters of self owned warehouse in the long term, which reflects a strong cost performance. At the same time, the concept of Hainan is superimposed, the stock price is flexible, and the “buy” rating is maintained.
