Core Viewpoint - The report from Western Securities indicates that domestic trade is at an upward demand turning point, and RCEP supports long-term freight rates for foreign trade shipping. Zhonggu Logistics, as a leader in domestic shipping, holds the advantage of the largest profit scale in the industry from 2021 to 2025, with a leading fleet size and continuous high dividends providing investment value [1] Company Overview - Zhonggu Logistics primarily provides container logistics services and is one of the earliest companies in China to specialize in domestic coastal container transportation. It ranks second in revenue and first in profit scale within the industry [1] Industry Analysis - In the foreign trade container shipping sector, Zhonggu Logistics has opened multiple near-sea routes and has leased some vessels to cultivate foreign trade routes, effectively integrating the domestic and foreign trade transportation supply chain, which strongly complements its domestic container logistics business [1] - The domestic trade is experiencing an upward demand turning point, while foreign trade shipping rates may face short-term fluctuations. However, the signing of RCEP is expected to support long-term freight rates [1] Investment Recommendation - The report concludes that Zhonggu Logistics has a leading advantage in profitability and capacity scale, initiating coverage with a "Buy" rating [1]

Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Insights - In the third quarter, the company achieved an operating revenue of 2.56 billion, a year-on-year decrease of 5.4%. The net profit attributable to the parent company was 340 million, down 3.7% year-on-year, while the net profit after deducting non-recurring items was 310 million, an increase of 65.4% year-on-year. The significant reduction in non-operating income and the high demand for chartered vessels contributed to an improved profit structure [2][4][10]. - The company is expected to see a recovery in domestic trade during the peak season, with strong performance in the northern grain and coal transportation. The forecasted net profits for 2025-2027 are 2.03 billion, 2.12 billion, and 2.21 billion, respectively, with corresponding PE ratios of 11.5, 11.0, and 10.5 times [10]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported an operating revenue of 7.9 billion, a decrease of 6.5% year-on-year. The net profit attributable to the parent company was 1.41 billion, an increase of 27.2% year-on-year, and the net profit after deducting non-recurring items was 1.13 billion, up 85.5% year-on-year [4][10]. - In Q3 alone, the operating revenue was 2.56 billion, down 5.3% year-on-year, with a net profit of 340 million, a decrease of 3.7% year-on-year, and a net profit after deducting non-recurring items of 310 million, an increase of 65.4% year-on-year [4][10]. Market Dynamics - The external chartering business remains robust due to limited new deliveries of feeder vessels and strong demand in regional shipping routes. The average charter rate for 4,250 TEU vessels was 54,000 USD per day in Q3, an increase of 8.6% year-on-year [10]. - The domestic trade market is stabilizing, with the domestic freight index (PDCI) recording 1,058 points, up 10.5% year-on-year. However, the recovery in domestic demand has faced challenges, with container throughput declining by 5.5% year-on-year in July and August [10].