QDPI(SH:601298) Huachuang Securities·2024-03-31 16:00Investment Rating - The report maintains a "Recommendation" rating for Qingdao Port (601298) with a target price of 9.9 CNY, indicating a potential upside of 34% from the current price [1]. Core Views - The company's 2023 annual report shows a stable growth in its core port business despite a slight decline in total revenue. The operating income for 2023 was 18.173 billion CNY, a decrease of 5.66% year-on-year, while the net profit attributable to shareholders increased by 8.7% to 4.92 billion CNY [1][12]. - The report highlights the robust growth in cargo throughput, with a total of 664 million tons, representing a year-on-year increase of 5.8%. Container throughput grew by 11.9% to 30.02 million TEU [1][12]. - The company is planning significant asset restructuring with Rizhao Port and Yantai Port, which is expected to enhance its competitive position and long-term growth potential [1]. Financial Summary - 2023 Financial Performance: - Total revenue: 18.173 billion CNY, down 5.66% year-on-year - Net profit: 4.923 billion CNY, up 8.7% - Basic earnings per share: 0.76 CNY, up 8.6% - Asset-liability ratio: 26.1%, down 2.1 percentage points from the previous year - Comprehensive gross margin: 35.6%, up 4.1 percentage points [1][12]. - Quarterly Performance: - Q1: Net profit of 1.26 billion CNY, +10.2% YoY - Q2: Net profit of 1.31 billion CNY, +11.5% YoY - Q3: Net profit of 1.23 billion CNY, +7.8% YoY - Q4: Net profit of 1.14 billion CNY, +5.2% YoY [1]. - Future Projections: - Expected net profits for 2024-2026 are projected at 5.42 billion CNY, 5.96 billion CNY, and 6.44 billion CNY, representing growth rates of 10.2%, 9.9%, and 8.1% respectively [1][12]. Business Segments - Container Business: Revenue of 1.199 billion CNY, a slight increase of 0.5% year-on-year, with segment profit of 1.889 billion CNY, up 13.1% [1]. - Dry Bulk Cargo: Revenue of 4.307 billion CNY, up 8.4% year-on-year, with segment profit of 671 million CNY, up 35.6% [1]. - Liquid Bulk Cargo: Revenue of 4.242 billion CNY, up 20.5% year-on-year, with segment profit of 2.539 billion CNY, up 9.8% [1]. - Logistics and Value-added Services: Revenue of 6.949 billion CNY, down 14.7% year-on-year, with segment profit of 1.522 billion CNY, up 2.1% [1]. Market Position - The report emphasizes the potential for value reconfiguration as the company integrates with Rizhao Port and Yantai Port, which may enhance its hub port status and long-term growth prospects [1].