Investment Rating - The report initiates coverage with a "Buy" rating for the company, projecting a target price of 32.25 yuan based on a 2024 PE of 11 times [42][73]. Core Insights - The company is a leading third-party cross-border chemical supply chain service provider in China, ranking 7th among comprehensive service enterprises in the "Top 100 Chemical Logistics" by the China Federation of Logistics and Purchasing [73]. - The chemical logistics market in China is expected to exceed 750 billion yuan in 2023, driven by increasing demand from the oil refining sector, which has seen a compound annual growth rate (CAGR) of 2.9% from 2012 to 2022 [73][82]. - The company has achieved significant revenue growth, with a CAGR of 41% and a net profit CAGR of 35% from 2017 to 2022, although it faced a revenue decline of 24% and a net profit drop of 42% in the first three quarters of 2023 due to falling international shipping prices [73][100]. Summary by Sections Company Overview - The company focuses on cross-border chemical logistics supply chain services, which accounted for 65% of its revenue in the first half of 2023. It also provides warehousing, road transportation, and supply chain trading services [100]. Market Dynamics - The chemical logistics industry in China is characterized by a fragmented supply side, with a CR100 market share of only 7%. The tightening of storage qualification approvals following several hazardous chemical incidents is expected to eliminate smaller, non-compliant logistics firms, benefiting larger, compliant companies [73][82]. Growth Strategy - The company is pursuing growth through mergers and acquisitions, having completed several acquisitions in 2023, including Ningbo Yongshun'an and Shaoxing Changrun Chemical, to enhance its operational capacity and market share [100]. Financial Projections - The company forecasts net profits of 180 million yuan, 300 million yuan, and 370 million yuan for 2023, 2024, and 2025, respectively, with corresponding EPS of 1.72 yuan, 2.89 yuan, and 3.54 yuan [42][73].
积极并购谋发展，长期增长应可期