Zhonggu Logistics(603565) SINOLINK SECURITIES·2024-11-01 00:31Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's revenue for the first three quarters of 2024 decreased by 9.1% year-on-year, primarily due to a decline in domestic shipping rates, while the net profit attributable to shareholders decreased by 7.0% [1] - In Q3 2024, the company achieved a revenue of 2.71 billion RMB, a year-on-year decrease of 14.1%, but the net profit attributable to shareholders increased by 16.4% [1] - The company has optimized its fleet and secured rental income from foreign trade shipping, which helped mitigate the overall revenue decline [1] Summary by Sections Performance Overview - For Q1-Q3 2024, the company reported a revenue of 8.44 billion RMB and a net profit of 1.11 billion RMB [1] - The PDCI index for Q1-Q3 2024 was 1039.4, down 19% year-on-year, while the CCFI index averaged 1573.5, up 63% year-on-year [1] Financial Analysis - The gross profit margin for Q3 2024 was 14.7%, an increase of 0.32 percentage points year-on-year [1] - The financial expense ratio increased to 3.11%, primarily due to a decrease in foreign exchange gains [1] - The company recorded asset disposal income of 176 million RMB in Q3 2024, a significant increase from the previous year [1] Fleet and Operations - All 18 newly built 4600TEU vessels have been put into operation, with a weighted average self-owned capacity of 2.592 million deadweight tons, representing 73.54% of total capacity [1] - The company plans to sell two vessels for an estimated total price of 112-120 million USD, which is expected to generate a tax-adjusted asset disposal income of 236-267 million RMB [1] Profit Forecast and Valuation - The net profit forecasts for 2024, 2025, and 2026 are maintained at 1.75 billion RMB, 1.81 billion RMB, and 1.94 billion RMB respectively [1] - The report reiterates the "Buy" rating based on the company's potential for profit improvement as operational efficiency increases [1]