Xingtong Shipping(SH:603209) GF SECURITIES·2024-11-20 11:05Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 19.13 CNY per share, indicating an expected upside from the current price of 16.77 CNY [3][4]. Core Insights - The company announced a joint investment with Xiamen Jianfa Supply Chain Logistics Technology Co., Ltd. to establish a limited liability company, with the company holding a 51% stake. This partnership aims to leverage Jianfa's strengths in platform, funding, and management alongside the company's expertise in domestic and international liquid cargo transportation [1][2]. - The company plans to invest up to 1.4 billion CNY to build 10.38 million deadweight tons of foreign trade chemical vessels, enhancing its capacity in the international chemical transportation market. This investment is projected to contribute an annual revenue of approximately 591 million CNY and a gross profit of around 176 million CNY, assuming current revenue per ton and gross margin remain unchanged [2][3]. Financial Projections - The report forecasts the company's earnings per share (EPS) for 2024, 2025, and 2026 to be 1.28 CNY, 1.47 CNY, and 1.78 CNY respectively, with a compound annual growth rate (CAGR) of 26% for net profit attributable to shareholders over the three years [2][3]. - Revenue projections for the years 2022 to 2026 are as follows: 785 million CNY (2022), 1,237 million CNY (2023), 1,574 million CNY (2024), 1,825 million CNY (2025), and 2,265 million CNY (2026), reflecting growth rates of 38.4%, 57.7%, 27.2%, 16.0%, and 24.1% respectively [2][3][4]. Valuation Metrics - The report assigns a price-to-earnings (P/E) ratio of 15 times for 2024, leading to a reasonable value estimate of 19.13 CNY per share. The projected P/E ratios for the following years are 13.01 (2025) and 11.31 (2026) [2][3]. - The report also highlights an expected return on equity (ROE) of 14.5% in 2024, increasing to 15.4% by 2026, indicating improving profitability [2][3].