\u3000\u3 Shengda Resources Co.Ltd(000603) 535 Guangzhou Jiacheng International Logistics Co.Ltd(603535) )
Events
1. The opinions of the CPC Central Committee and the State Council on accelerating the construction of a national unified market was issued on October 10
The bank has signed a comprehensive strategic cooperation agreement with Hainan development and Reform Commission and the company under construction, and has actively provided support to Hainan development and Reform Commission and its 2 pilot projects
The above events constitute three major surprises: (1) policy support is stronger than expected, and the progress of major projects is guaranteed; (2) The financing methods are extremely rich, and there are no worries about the project construction; (3) After the logistics real estate assets are repriced by REITs, the value of the company’s core competence (whole process supply chain integration service) is expected to be revalued.
Key investment points
“Building a modern circulation system” is the direction of the policy.
The opinion points out that starting from the overall requirements, “based on domestic demand and smooth circulation” is the principle, “promoting the construction of modern circulation system and reducing the circulation cost of the whole society” is the goal. In terms of “promoting high standard connectivity of market facilities”, “digitalization”, “multimodal transport”, ” Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated development”, “vigorously developing third-party logistics”, “scientific and technological innovation and business model innovation of logistics industry”, the above policy core statements perfectly fit Guangzhou Jiacheng International Logistics Co.Ltd(603535) strategy and capability:
Guangzhou Jiacheng International Logistics Co.Ltd(603535) – a third-party logistics provider that provides customized logistics solutions and whole process supply chain integration services for manufacturing and e-commerce enterprises. Among them, providing customized high-standard warehousing services for customers is the core competitiveness of the company. 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. Therefore, we believe that the attention paid to the national policy level will become a strong guarantee for the accelerated realization of Guangzhou Jiacheng International Logistics Co.Ltd(603535) company’s strategic objectives.
Join hands to strengthen and enrich the granary, and soar like a tiger.
The strategic cooperation between the company and ICBC covers financial business and investment banking business. In terms of financial business, it includes comprehensive financial service support with a total amount of RMB 3 billion or equivalent foreign currency, preferential financing interest rate, multi currency and multi term financing business varieties and comprehensive financing solutions. In terms of investment banking business, it provides business scheme design, financial consulting, investment decision-making consulting and other services for Guangzhou Jiacheng International Logistics Co.Ltd(603535) ‘s major financing business and various major matters such as asset acquisition, merger and reorganization, and customizes ABN, REITs, REITs, M & a funds, M & A loans and other innovative investment banking products. The above cooperation contents will include the company’s high-standard logistics center projects under construction and planned. The company’s projects under construction and under construction total about 1 million square meters, and the planned projects total about 1.35 million square meters (see the notes for project details).
The significance of this strategic cooperation to the market value of the company lies in:
(1) abundant grain and grass, optimized cost, and more optimistic profit prospect of high-quality business.
At present, the company is in the stage of large-scale capital expenditure. Among the projects involved in the notes, Guangzhou Jiacheng International Logistics Co.Ltd(603535) (Hainan) multi-functional digital intelligence logistics center, Tianyun international digital intelligence processing and circulation center, Dawan district (South China) international e-commerce port and Dawan District Guangzhou Jiacheng International Logistics Co.Ltd(603535) super world port all require investment. With the rapid development of the company’s business and the accelerated construction of high-standard Logistics Center (high-standard warehouse), the demand for funds will further increase. Based on ICBC’s financial service strength, this strategic cooperation will solve the company’s worries in fund-raising. At the same time, the use of diversified financing tools will also effectively reduce the company’s overall capital cost, strengthen the profitability of the company’s projects, significantly thicken the company’s overall EPS and greatly improve the company’s roe level.
(2) scarce assets and core competence are priced separately, and the enterprise value revaluation is imminent.
The strategic cooperation agreement specifically states that the company intends to explore the issue of public REITs through Guangzhou Jiacheng International Logistics Co.Ltd(603535) (Hainan) multi-functional digital intelligence logistics center project. The project meets the national major strategies, development plans, macro-control policies, industrial policies, regulations and systems on fixed asset investment management, as well as the relevant requirements of pilot areas and industries, and has applied to Hainan Provincial Development and Reform Commission for inclusion in the REITs pilot project library, It plans to apply to the national development and Reform Commission to carry out the pilot of infrastructure REITs. Recently, the public offering REITs products have shown a hot state of rising volume and price. The logistics real estate assets, especially the logistics real estate assets with high-efficiency operation ability superimposed on the core location, belong to the very high-quality bottom assets of property rights REITs Guangzhou Jiacheng International Logistics Co.Ltd(603535) actively try to use REITs as an important financing method of the project, which will effectively drive the revaluation of the overall value of the company: first, REITs investors value stable dividend return and asset appreciation return, while stock market investors value the company’s operating ability and corresponding growth. After issuing public REITs to evaluate the value of scarce logistics real estate assets corresponding to the company’s core business, It is easier for the market to see the company’s core operation ability and growth, and give the company a clearer and reasonable value evaluation. Secondly, the decline in dependence on equity financing in the secondary market will also effectively eliminate the concerns of investors in the secondary market about the dilution of share capital in the future, which is also conducive to the revaluation of the company’s value.
Investment suggestion: the value is undervalued, which is a rare deterministic target in an uncertain environment.
Once again, the company’s future positioning is to establish a national / global one-piece network and improve logistics links by laying out sea, land and air three-dimensional intelligent logistics parks in important transportation hub cities across the country and even the world, so as to better provide customized whole process supply chain integrated logistics services for manufacturing and cross-border E-commerce customers. We are optimistic about the company based on: (1) the cross-border e-commerce logistics industry has a broad prospect of certainty; (2) The whole process supply chain integration service capability of the company’s leading industry; (3) A series of core location scarce logistics assets obtained by relying on the company’s ability advantages. From the company’s built, under construction and proposed projects, the certainty of performance growth can be considered from the five-year time dimension. The total expected net profit after the project is put into operation is nearly 1 billion. A series of recent events have posed important benefits to the company in developing new growth points (Jiacheng Airlines), enhancing project certainty (policy guarantee and broadening financing channels), and improving project profitability (financing cost optimization). In the past three years, we expect that the company’s revenue from 2022 to 2024 will be 1.762/23.88/2.909 billion, with a year-on-year increase of 38.87% / 35.53% / 21.78%, and the net profit attributable to the parent company will be 302 / 4.33/549 million, with a year-on-year increase of 65.47% / 43.60% / 26.67%. The corresponding P / E ratio of the current market value is 16.54/11.52/9.10x. As an investment target with both growth and certainty, it is significantly underestimated and maintains the “buy” rating.
Risk warning: the construction speed of the project is slow; The prosperity of cross-border e-commerce decreased.
