SIPG(600018) 华创证券·2024-04-10 16:00Investment Rating - The report maintains a "Recommend" rating for Shanghai International Port Group (SIPG) with a target price of 7.1 yuan, representing a 27% upside from the current price of 5.61 yuan [1] Core Views - SIPG's port operations showed steady growth, but investment income faced pressure in 2023 [1] - The company achieved operating revenue of 37.552 billion yuan, a slight increase of 0.73% YoY, while net profit attributable to shareholders dropped 23.34% to 13.203 billion yuan [1] - Container throughput reached 49.158 million TEUs, maintaining SIPG's position as the world's largest container port for 14 consecutive years [1] - Investment income from associates and joint ventures decreased by 40.8% to 7.09 billion yuan, mainly due to the decline in container shipping market conditions [1] Financial Performance Revenue and Profit - 2023 revenue: 37.552 billion yuan (+0.73% YoY) [1] - Net profit: 13.203 billion yuan (-23.34% YoY) [1] - Gross margin: 37.4% (-0.41 ppts YoY) [1] - ROE: 10.72% (-4.61 ppts YoY) [1] Segment Performance - Container business: Revenue of 15.615 billion yuan (-0.88% YoY), gross margin of 43.81% (+2 ppts YoY) [1] - Bulk cargo business: Revenue of 1.547 billion yuan (+2.25% YoY), gross margin of 21.88% (+11.96 ppts YoY) [1] - Port logistics: Revenue of 10.95 billion yuan (-13.25% YoY), gross margin of 22.46% (-5.3 ppts YoY) [1] - Port services: Revenue of 3.567 billion yuan (+37.72% YoY), gross margin of 29.44% (-1.99 ppts YoY) [1] Investment Income - Total investment income from associates and joint ventures: 7.09 billion yuan (-40.8% YoY) [1] - Postal Savings Bank of China: 3.18 billion yuan (+4.72% YoY) [1] - Bank of Shanghai: 1.81 billion yuan (+2.36% YoY) [1] - Orient Overseas: 860 million yuan (-85.8% YoY) [1] Forecast and Valuation - 2024-2026 net profit forecast: 14.066 billion, 14.645 billion, and 15.569 billion yuan respectively [1] - 2024-2026 EPS forecast: 0.60, 0.63, and 0.67 yuan [1] - 2024-2026 PE ratio: 9x, 9x, and 8x [1] - 2024 PB valuation: 1.2x [1]