CMPort(SZ:001872) Xinda Securities·2024-09-10 08:38Investment Rating - The report assigns an "Accumulate" rating to the company, indicating a positive outlook for investment [2][3]. Core Viewpoints - The company, China Merchants Port (001872.SZ), is a leading global port investment, development, and operation platform, managing assets from China Merchants Group. Its profits primarily come from domestic ports in the Pearl River Delta, Shanghai Port Group, Ningbo Port, and overseas port investments. The domestic port business benefits from strong export demand, while overseas profits are expected to benefit from the "Belt and Road" initiative and recent adjustments in shipping routes due to the "Red Sea Incident" [2][9][10]. Summary by Sections 1. Company Overview - China Merchants Port is a world-leading port operator, managing assets from China Merchants Group. The company is continuously enhancing its global port network, focusing on major coastal hubs in China and expanding into Asia, Africa, Europe, Oceania, South America, and North America [2][11]. 2. Domestic Operations - The company’s domestic port assets are distributed nationwide, with a concentration in the Pearl River Delta, Southeast, and Southwest regions. In 2023, domestic port business profits reached 3.833 billion yuan, a year-on-year increase of 6.26%, with a CAGR of 18.28% from 2020 to 2023. The company’s container throughput in mainland China and Hong Kong reached 91.569 million TEUs in the first seven months of 2024, up 9.77% year-on-year [2][9][10]. 3. Overseas Operations - The company’s overseas port assets are primarily located in Southeast Asia, Africa, and South America, with significant holdings in Sri Lanka, Indonesia, Togo, and Brazil. The overseas business is expected to grow due to the "Belt and Road" initiative and recent shipping route adjustments from the "Red Sea Incident," which led to significant increases in container throughput in Sri Lanka and Djibouti [2][9][10]. 4. Financial Forecast and Valuation - The report forecasts that the company will achieve operating revenues of 17.445 billion yuan, 18.558 billion yuan, and 19.471 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 10.76%, 6.38%, and 4.92%. The net profit attributable to the parent company is expected to be 4.026 billion yuan, 4.159 billion yuan, and 4.400 billion yuan for the same years, with corresponding EPS of 1.61, 1.66, and 1.76 yuan [2][3][4].