Shanghai Port Group (600018): Performance in line with expectations benchmarking international first-class ports
The performance was in line with expectations, and the port business and investment business were stable. Shanghai Port Group released its interim results report.
In the first half of 2019, the company realized operating income of 17.2 billion yuan, a decrease of 1.
8%; net profit attributable to mother 43.
70,000 yuan, an increase of 29 in ten years.
1%, in line with our expectations.
The investment income is 24.
1 ppm, an increase of 1 in ten years.
3 trillion; the company reduced the interest budget by 2 trillion in financial expenses.
We maintain our profit forecast for 武汉夜网论坛 the company (2019/2020/2021 forecast EPS is 0 respectively.
56 yuan) and target price range 9.
41 yuan unchanged, maintain “Buy” rating.
Container explosions grew steadily and profitability improved in the first half of 2019. The company completed container explosions of 21.54 million TEUs, an increase of 5.
0%, the annual average growth rate of coastal ports throughout the country is 4.
4%; finished cargo tungsten 2.
700 million tons, reducing by 1 every year.
9%, of which carbonization of bulk cargo is 0.
6.2 billion tons, an annual decrease of 18.
As the gross profit margin of the container business is significantly higher than that of the dry bulk business, the company actively casts ore, coal and other types of goods to improve the overall profit quality.
In the field of investment finance and income, the income increased 武汉夜生活网 steadily in 1H19. The company realized investment income 24.
10,000 yuan, accounting for 55% of net profit attributable to mother.
The company holds the Postal Savings Bank4.
1% equity in Bank of Shanghai 7.
3% equity, OOCL 9.
The three companies above 1H19 contributed investment income14.
400 million, 7.
500 million and 0.
9 trillion, the three together accounted for 94 of investment income.
Among them, Shanghai Bank and Postal Savings Bank recorded a high increase in profits.
The company has abundant monetary funds. As of June 30, the company has 266 monetary funds.
Free trade port construction and benchmarking of world-class ports On July 17, 2019, the third meeting of the Shanghai Committee of the Committee for Comprehensive Deepening Reform pointed out that the Shanghai Free Trade Zone would be benchmarked against the internationally recognized free trade zone with the strongest competitivenessFundamental institutional innovation and change.
Earlier, the State Council’s “Plan for Comprehensively Deepening the Reform of China (Shanghai) Pilot Free Trade Zone’s Reform and Opening-up Plan” also pointed out the timetable to establish the system of international investment and trade regulations in 2020.
We believe that the company will benefit from the construction of the Shanghai Free Trade Zone and Free Trade Port, and it is expected to attract more international transit cargo sources. The port industry chain services will further develop and benchmark Hong Kong, Singapore and other world-class ports.
Maintain “Buy” rating and target price to 9.
The average value of the port business and investment business of the company is RMB 41. The growth momentum is stable and stable. We maintain our profit forecast unchanged (the net profit attributable to the parent in 2019/2020/2021 is 113.
Based on 20.
2x 2019E PE estimate (Company average PE 15 for the past three years.
6x + 2.
5 standard deviations), maintaining a target price range of 9.
Risk reminders: 1) the global economy is down; 2) Sino-US trade frictions are intensified; 3) natural disasters; 4) policy factors.